How can you supplement your retirement?
Employee Savings, PEE, PER (PERCOL, PERCAT, & PERIN)
Retirement is a major concern for French people and therefore for your employees. They are aware that the pay-as-you-go system is breaking down and the proportion of working age adults to retired people is decreasing.
Your company can implement collective solutions to help your employees build up a supplement to their pensions in fiscally advantageous conditions.
Employee Savings Plans
The corporate savings plan (PEE) and the retirement savings plan (PER) are optional or mandatory savings plans open to all employees. They help employees build up a supplement to their pensions.
The employee’s payments can be supplemented with a matching employer contribution from your company within the 25% annual social security limit (PASS). The investments made enjoy exemptions from social security contributions, income tax, and value added tax.
It should be noted that the PACTE law recently did away with the 20% “forfait social” employer contribution for employee savings (subject to conditions relating to the number of staff) for profit sharing (for companies < 250 employees), shareholding, and matching contributions (for companies < 50 employees).
The retirement savings plan (PER) is the new savings investment tool exclusively for saving for retirement. It has been in place since the PACTE law was adopted. Exclusively for retirement savings, it will replace other tools (namely, PERP, Madelin, PERCO, and Article 83, which will remain on the market until October 2020) starting October 2019. There will be three versions: