Mandatory company retirement savings plan - PEROB

PEROB

The Mandatory Company Retirement Savings Plan enables you to receive additional retirement income financed largely with compulsory contributions paid in by your employer.

Key information

Finance supplementary retirement savings thanks to your employer

From the moment you join, your plan will be topped up with contributions paid in regularly by your employer.
You have the option to make voluntary payments and to convert unused leave or days registered in your Time Savings Account if so allowed under your scheme.

Select the type of financial management that suits you

You may choose between two financial management regimes depending on your needs and objectives.
You may change your mind at any time free of charge.
A euro-denominated Sécurité vehicle is available, enabling you to secure the capital you invest in it.

Release your retirement savings under various circumstances

There are specific cases allowing for early release during your working life so that you can receive your savings in the form of a lump sum as protection in the event of unforeseen circumstances but also to build or acquire your main residence¹.

How does it work?

You may benefit from a Mandatory Company Retirement Savings Plan if one has been set up by your employer and you have joined it. Your savings will be allocated across 3 compartments depending on their source:

Voluntary Retirement Savings compartment

made up of your voluntary payments
when you retire, you may withdraw your savings as an annuity and/or lump sum

Mandatory Retirement Savings compartment

made up of compulsory contributions paid in directly by your employer (employer’s share, potentially supplemented with an employee’s share)
when you retire, you may withdraw your savings only as an annuity unless the amount is below or equal to €1,200/year; in this case, the savings can be withdrawn as a lump sum or an annuity

Time and Salary Retirement Savings compartment

made up of your unused leave, your time savings account and your incentive and profit-sharing bonuses if so allowed under your plan²
when you retire, you may withdraw your savings as an annuity and/or lump sum³

Each of these compartments may also be topped up with funds transferred from other schemes.
When you retire, you may select the type of annuity that is best suited to your circumstances and those of your relatives.
Should you run into financial difficulties, you may withdraw your savings as a lump sum under specific circumstances allowing for early release.

How are your savings invested?

Your savings may be invested in:

The euro-denominated Sécurité vehicle, the annual revaluation of which is fully vested. The amount of savings invested therefore increases year after year. The interest calculated generates interest in subsequent years. This vehicle consists mostly of bonds with a very cautious investment profile.
Other (unit-linked) vehicles covering different investment objectives, asset classes, regions, business sectors and risk levels. Note that unit-linked vehicles entail a risk of loss of capital.

You may manage the savings available in your individual retirement account in one of two ways:

Manager-guided investment, which consists in delegating management of your savings to asset management experts; this enables you to take advantage of the opportunities offered by the financial markets by investing in various vehicles and to gradually secure your savings until you retire.
Self-managed investment, which enables you to freely choose how your savings are allocated between the 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.

What happens to your savings if you change company?

Your retirement savings will continue to grow even if you leave the company.

You may continue to make optional individual payments, either on a one-off basis or via a standing order, provided you have not signed up to a mandatory retirement savings plan subscribed by your new employer.

What happens to your savings in the event of death?

Beneficiaries are designated by default when you join the scheme. However, you may make use of the beneficiary clause if you yourself wish to designate the beneficiaries of your savings should you die before your retirement. This choice may be modified at any time but becomes irrevocable if accepted by the beneficiary.

Our schemes also allow for a minimum guarantee which ensures that your beneficiaries receive, at the very least, the accumulated amount of net contributions paid in since you joined the scheme, thereby offering protection against volatile financial markets.

What is the tax regime applicable to this scheme?

Your scheme offers the following tax benefits:

Compulsory contributions paid into your scheme’s mandatory savings compartment are excluded from your taxable income.
The voluntary payments you make may be deductible from your total taxable net income within certain limits stipulated by law.
You may combine the cap on the maximum tax-deductible amount paid in with that of your spouse or civil partner, and thus increase the benefits of this favourable tax regime.
Transfers made from your Time Savings Account or unused leave are deductible from your gross income, up to a deductibility threshold for contributions paid into the supplementary retirement plan. Above this level, days converted are not exempt from income tax.
Your incentive bonus and profit-sharing bonus are exempt from income tax.

The information provided above is not exhaustive and does not include full details of the scheme’s tax regime.

Refer to the factsheet for all the tax-related information regarding the PEROB plan

1 In this case, Mandatory Retirement Savings cannot be released.
2 Voluntary retirement savings and Time and Salary retirement savings: on retiring, the saver may choose to withdraw either the total amount as an annuity, the total amount as a lump sum, or part of the amount as a lump sum and the other part as an annuity in the proportions of their choice, except for the compulsory contributions compartment where savings must be withdrawn as an annuity if the amount of the annuity exceeds €1,320 per year.
3 Only if the Mandatory Company Retirement Savings Plan covers all employees.