Retirement Savings Plan (RIP) - Collective company PER

The collective company ERP is a long-term savings product. It allows you to save during your period of activity to get, with the help of your company, a capital or a rent at retirement age.

All companies can offer a collective company PERP to their employees, even if they have not put in place a company savings plan (PEE).

The plan must be open to all employees. However, a seniority condition may be required (maximum 3 months).

Membership is optional, but the regulation may provide for automatic membership for all 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.

If you change your company, you can transfer your collective company PER

• in the PER of your new business
• or in an individual RIP.

The collective company ERP must be set up in a company.

The plan may be set up at the initiative of the company managers or by agreement with the employees' representatives. Where there is at least one trade union representative or social and economic committee in the company (ESC), the employer is obliged to conduct prior negotiations with them before creating the plan.

The collective company ERP may be set up at company level, or in a business-to-business framework.

The company may choose to combine the voluntary group savings plan and the mandatory group savings plan in a single plan. Old savings plans, such as Perco and section 83, can be transferred into a single plan.

Managed management

Unless otherwise stated by you, the management of the amounts paid out of the RIP follows the principle of managed management. This means that when retirement is distant, savings can be invested in riskier, more remunerative assets. As we approach retirement age, savings are increasingly being channeled into less risky assets.

The collective company PER must offer you at least one alternative investment vehicle, which notably allows you to invest in a solidarity fund.

Informing the employee

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 collective company PER in place, it must provide you with a settlement that informs you of the plan and its content.

Each year, the manager must provide you with the following information:

• Evolution of savings
• Financial performance of investments
• Amount of charges levied
• Plan Transfer Conditions

From 5^e year before retirement age, you can ask the PER manager about exit opportunities that are appropriate for your situation.

Payments by the employee

You can feed your collective company PER with:

• Voluntary payments
• Sums from profit-sharing
• Sums from the participation
• Entitlements registered on a time savings account (CET)
• In the absence of the TRC, amounts corresponding to untaken rest days, up to a maximum of 10 per year.

You can also transfer to your collective company PER amounts from another company PER, an individual PER or another retirement savings product (PERP, Madelin, Perco, etc.).

As long as you work in the company, the costs associated with managing the collective PER are covered by your employer.

Employer Payments

The collective company ERP may be financed by supplementary company payments, known as abundances. The abundance may not exceed 3 times the amount you yourself paid, or be more than €7,419.

In addition, if the plan regulations so provide, the company may carry out initial and periodic abundances.

The amounts paid out of the group company ERP are frozen until your retirement.

However, you can get your savings back early in the following cases:

• Disability (you, your children, your spouse or Civil partnership partner)
• Death of your spouse or Civil partnership partner
• Expiry of your unemployment insurance benefits
• Over-indebtedness (in this case, the over-indebtedness commission has to write to the managing body of the ERP)
• Termination of self-employed activity following a judgment on winding up by a court
• Purchase of your principal residence (except entitlements from compulsory payments transferred to the plan)

When you reach retirement age, you can request that the savings in your group company LIP be paid 

• or capital,
• or in annuity,
• or partly in capital and annuity.

If you die, the plan will not be automatically closed.

The money you have saved will be repaid to your heirs or to the beneficiaries which you have designated in the contract, in the form of capital or rent.

If the plan is in the form of a securities account, the savings are included in the estate.

If it is a plan that has resulted in the enrollment of a group insurance contract, the amounts saved will be repaid to one or more of the beneficiaries that you have designated in the contract, depending on the life insurance rules.

Entry taxation

Voluntary and mandatory payments you make to a company RIP in a year are deductible from your taxable income in that year. This deduction shall not exceed an overall ceiling amount set for each member of the tax shelter.

This ceiling shall be equal to the higher of the following 2 amounts:

• 10% of 2022 professional income, net of social contributions and professional expenses, with a maximum deduction of €37,094,
• or €4,399if this amount is higher.

If you do not deduct voluntary payments from your taxable income, you will be taxed only on capital gains at the time of payment. liquidation savings.

Payments into an ERP of amounts and entitlements arising from company wage savings (profit-sharing, participation, employer contributions) are exempt from income tax.

Exit taxation

The output tax depends on the nature of the payments which fed into the RIP, and the method of liquidation savings (annuity or capital).