Group Retirement Savings Plan (Perco)

Verified 01 January 2025 - Directorate for Legal and Administrative Information (Prime Minister)

The Collective Retirement Savings Plan (Perco) is a company savings product. New Retirement Savings Plans (RSPs) have been available since 1er October 2019, and your Perco can be transformed into a collective company PER. Since 1er October 2020, Perco can no longer be implemented in companies. If you already have a Perco, you can still make payments or transfer your savings to a new Perco.

All companies can offer a Perco to their employees, even if they do not have a PEE.

If your company offers a Perco, it is open to all employees. However, a seniority condition may be required (maximum 3 months).

The rules of the plan may provide for the automatic enrollment of employees. In this case, you must be informed of your membership, under the conditions laid down in the regulation. You then have 15 days to make it known that you refuse to adhere to the plan.

On retirement or early retirement, if you have already made payments on a Perco, you can continue to do so until you have applied to unlock your rights.

If you resign or are laid off, you can continue to make payments on your Perco if there are no payments with your new employer. But you will no longer be able to benefit from the abundances from your former employer. In addition, you will be charged a maximum fee for managing these payments.

FYI  

In companies with less than 250 employees, the Civil partnership or partner of the head of company with the status of employee can also benefit from Perco.

When you are hired, the employer must give you a payroll savings booklet indicating the arrangements put in place in the company.

If the company has a Perco in place, it must provide you with a policy that tells you about the plan and its content.

At least once a year, the company must give you a status report. This statement should indicate your choice of allocation of Perco savings and the estimate of its value as of December 31 of the previous year. It must also show the payments and withdrawals made during the previous period.

When you leave the company, you must receive a summary statement of all money and securities saved or transferred. If you wish to continue to benefit from the plan, you will have to pay a custody account keeping. The company may also decide to bear these costs. The summary statement given to you when you leave should specify whether the expenses are covered by the company or by deduction from your assets.

Employee Payments

The employee's payments on the Perco are optional, unless the company's regulations provide for a minimum annual payment. In this case, the minimum annual payment shall not exceed the sum of €160.

To power your Perco, you can use the following amounts or entitlements:

Voluntary payments shall be limited to a maximum of 25 % of gross annual remuneration.

Warning  

Only the portion of untaken annual leave exceeding a minimum of 24 days may be paid on the Perco.

Employer Payments

The Perco can be supplied by supplementary payments from the company, called abundances. The abundance may not exceed 3 times the amount you yourself paid, or be more than €7,536.

In addition, if required by the Perco Regulations, the company may make initial and periodic payments.

The total amount of such periodic payments may not exceed €942 per year.

Warning  

Supplementary payments made by companies of at least 50 employees are subject to a contribution, called social package.

Placement Modes

Perco must offer you at least 3 investment vehicles with different management orientations.

In addition, you should be able to choose an investment that gradually reduces financial risks. Unless you choose otherwise, the amounts paid into the are automatically placed in this way.

In addition, the Perco regulation must provide for decision support to accompany you in the decision-making.

The sums collected under Perco may be invested in FCPE hold unlisted securities or securities of the company that created Perco, up to 10%.

Amount hold time

The money paid into Perco is frozen until retirement.

However, you can request the early release of the sums in the following cases:

  • Death (you or your Civil partnership or partner)
  • Disability (you or your Civil partnership or partner, your children)
  • Employee debt overhang
  • Acquisition of the principal residence
  • Rehabilitation of the main residence following a natural disaster
  • Expiry of the employee's entitlement to unemployment insurance.

No time limit is required for the request for early release. There is an exception for the purchase or refurbishment of the principal residence, for which the time limit is 6 months.

Warning  

In the event of the beneficiary's death, there is no time limit imposed on rights holders to make the application. However, they will not benefit from the non-taxation of capital if they apply more than 6 months after death.

Exiting the Perco

You are entitled to the payment of the sums from the moment you retire.

The sums are generally issued in the form of life annuity acquired for consideration.

However, the Perco Regulation may also provide for the issue of capital, paid in one installment or in installments. The regulation specifies how you can express your choice.

Abundance of company

The abundance of the company shall be exempt from income tax up to €7,536.

Voluntary payments by the employee

Voluntary payments of the employee resulting from the profit-sharing and participation shall be exempt from income tax up to €35,325.

Other voluntary payments do not benefit from tax exemption.

Income from securities held in the plan

If reinvested in the plan, the income from the securities held in the plan shall be exempt fromincome tax.

If they are not reinvested in the plan, they are taxable (income tax and social contributions at the rate of 17.2%).

Exiting the Perco 

The taxation of the sums withdrawn from Perco depends on the method of exit.

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Exit in life annuity

The life annuity received from Perco is calculated according to the life insurance rules.

The calculation takes into account the amount of your savings, your age and your gender.

The annuity is subject to income tax, in the category of life annuities acquired for consideration.

This scheme allows for the exemption of part of the annuity. The exempt part of the annuity varies between 30 and 70% depending on the age of the holder.

The taxable part of the annuity is subject to social security contributions at the rate of 17.2%.

Capital outflow

The part of the capital corresponding to the employee's voluntary payments is exempt from income tax and social security contributions.

The share of capital corresponding to the gains realized during the period of the plan is exempt from income tax but subject to social security contributions at the rate of 17.2%.

FYI  

In the event of a transfer of savings from Perco to a collective tax benefit, social security contributions will be calculated on the basis of the rates in force at the time of payment.

FAQ