Group Retirement Savings Plan (Perco)
Verified 01 January 2023 - 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: titleContent to their employees, even if they have not PEE.
If your company offers a Perco: titleContent, 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.
At the time of retirement or early retirement, if you have already made payments on a Perco: titleContent, you may continue to do so until you have requested the release of your rights.
If you resign or are fired, you can continue to make payments on your Perco: titleContent if there are no jobs 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.
in companies with less than 250 employees, the Civil partnership or partner of the head of company with the status of employee may also benefit from the Perco: titleContent.
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 implemented a Perco: titleContent, it must provide you with a regulation informing you of the existence of 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 savings Perco: titleContent and an estimate of its value as at 31 December 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.
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:
- Sums from profit-sharing
- Sums from the participation
- Sums from the transfer of other plans of wage savings
- Entitlements registered on a time savings account (TSA)
- In the absence of the TRC, amounts corresponding to unused rest days, up to a maximum of 10 per year
- Voluntary cash payments
Voluntary payments shall be limited to a maximum of 25 % of gross annual remuneration.
only the portion of untaken annual leave exceeding a minimum of 24 days may be paid to the Perco.
The Perco: titleContent may be financed by supplementary payments from the company, called abundances. The abundance may not exceed 3 times the amount you yourself paid, or be more than €7,039.
In addition, if the Perco: titleContent As provided for, the company may make an initial payment and periodic payments. The total amount of such payments may not exceed €880 per year.
additional payments made by companies of at least 50 employees are subject to a contribution, called social package.
The Perco: titleContent 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 in the Perco: titleContent are automatically placed this way.
Furthermore, the Rules of Procedure Perco: titleContent should include decision support to assist you in decision making.
The sums collected under the Perco: titleContent may be invested in FCPE which hold unlisted securities or securities of the company which created the Perco: titleContent, up to 10%.
Amount hold time
Amounts paid on the Perco: titleContent are stuck 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.
in the event of the death of the beneficiary, there is no time limit imposed on the 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 Rules of Procedure Perco: titleContent may also provide for the issue in the form of a 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 €7,039
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 €32,994.
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 17.20%).
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 collected from Perco 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 17.20%.
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 17.20%.
in the event of a transfer of savings from Perco to a collective biz, social security contributions will be calculated on the basis of the rates in force at the time of payment.
- Labor Code: Articles L3334-1 to 3334-5-1Employee Membership (Article L3334-5-1)
- Labor Code: Articles L3334-6 to L3334-10Payments
- Labor Code: Articles L3334-11 to L 3334-13Composition and management of PERCO
- Labor Code: Articles L3334-14 and L3334-15Availability of payments
- Labor Code: Articles L3341-6 to L3341-8Informing the employee
- Labor Code: Article L3342-1Seniority condition
- Labor Code: Articles R3334-1 to R3334-5Savings allowance to gradually reduce financial risks (Article R3334-1-2), issue in the form of an annuity or capital (Article R3334-3), information to the employee (Article D3334-3-1), ceiling on employer payments (Article D3334-3-2), cases of early release (Article R3334-4)
- Labor Code: Articles R3341-5 to R3341-6Informing the employee
- Interdepartmental instruction of February 18, 2016 on profit sharing, participation and wage savings plans (PDF - 170.9 KB)
- Bofip-Taxes n° BOI-RSA-ES-10-30-20 relating to employee savings and employee share ownership - Group retirement savings plan
- Wage savings, participation and profit sharingService-Public.fr