Collective retirement savings plan - PERCO
The Collective Retirement Savings Plan (PERCO) is a solution enabling you to receive additional income during your retirement, potentially with the help of your employer and within a favourable fiscal and social framework.
The PERCO preceded the Plan d’Epargne Retraite d’Entreprise Collectif (PERECO, or collective company retirement savings plan) created by the PACTE law and has not been commercialised since 1st October 2020, although it remains available if your company offered one prior to this date.
Key information
Finance supplementary retirement savings
You may top up your PERCO in various ways, such as by making voluntary payments or payments from your employee savings and time savings accounts if so allowed under your scheme.
Benefit from flexible savings
The amounts paid into a PERCO become available on retirement unless they are released early under specific circumstances permitted by law.
Take advantage of a favourable tax regime
The amounts allocated to a PERCO (profit-sharing bonus, incentive bonus and employer contribution) are exempt from income tax and subject only to CSG (social security contributions) and CRDS (social debt repayment contributions)1.
How does it work?
You may benefit from a PERCO scheme if one has been set up by your employer.
Your PERCO may be topped up with:
- your voluntary payments;
- your profit-sharing bonus;
- your incentive bonus;
- the employer’s contribution (an optional additional amount paid in by the company) or, under certain conditions, amounts paid in by the company unilaterally;
- entitlements transferred from your Time Savings Account (TSA), if so allowed under the scheme governing the TSA, or from unused leave;
- amounts transferred from other employee and retirement savings plans (except PERECO plans).
Amounts paid into the PERCO become available:
- at the legal retirement age in the form of a life annuity, a lump sum or a combination of the two;
- if released early under certain circumstances permitted by the regulations in the form of a lump sum.
How are your savings invested?
Your company offers various investment vehicles covering different investment objectives, different asset classes, regions, business sectors and risk levels. Note that investment vehicles entail a risk of loss of capital.
These investment vehicles (and the associated documentation) can be found in the rules governing the relevant employee or retirement savings plan(s) offered by your company.
You have two options when it comes to managing your savings:
- Manager-guided investment, which enables you to delegate management of your savings to asset management experts, take advantage of the opportunities offered by the financial markets by investing in various vehicles, and gradually secure your savings until you retire.
- Self-managed investment, which enables you to freely choose to allocate your savings between various financial vehicles and to change this allocation whenever you so wish.
You may switch from one type of management to another at any time free of charge, but also modify your investment choices by switching between funds, in accordance with the terms and conditions set out in the scheme’s rules.
What happens to your savings if you change company?
You may keep your savings in your plans and may even continue to make payments into them provided your new employer does not offer the same type of plan.
On your departure, you will have to begin paying the account administration fees inherent in the scheme that were previously paid by your former employer (see the pricing terms provided by your former employer’s account-keeper).
What happens to your savings in the event of death?
The request to release your savings (full withdrawal) may be made at any time as from the date of death, without any time limit. However, any capital gains realised as from the 1st day of the 7th month following your death will lose their tax exemption and become taxable in accordance with common law conditions.
What is the tax regime applicable to this scheme?
Votre dispositif présente les avantages fiscaux suivants :
- The employer’s contribution is exempt from income tax and subject only to CSG (social security contributions) and CRDS (social debt repayment contributions)1.
- Profit-sharing and incentive bonuses are exempt from income tax and subject only to CSG and CRDS1.
- Entitlements transferred from the TSA or from unused leave are exempt from income tax and subject only to CSG and CRDS1.
- Any capital gains on your savings are exempt from capital gains tax on transferable securities and subject only to social contributions².
Refer to the factsheet for all the tax-related information regarding the PERCO
1 At a rate of 9.7%, of which 6.8% deductible CSG, at 01/01/2023; contributions deducted by your employer.
2 At a rate of 17.2% at 01/01/2023.