The PER company

The Retirement Savings Plan (PER) is a unique system that offers two subscription methods: it can be subscribed either within the framework of the company (PER d’entreprise), or on an individual basis (PER individual).

Any business manager employing at least one employee, even part-time or employee himself, is concerned by the subscription of a company PER not only on a personal basis, but above all on a professional basis.

Decryption of the Enterprise PER

Context reminder

For the sake of simplification and in order to set up a global management of retirement savings, the law relating to the growth and transformation of companies, known as the PACTE law, has set up a single system, the PER, which is available in three forms, since October 1, 2019: – the Individual Retirement Savings Plan (individual PER), open to natural persons;
– the Collective Company Retirement Savings Plan (collective company PER), open to companies, which replaces the collective retirement savings plan (PERCO);
– the Mandatory Retirement Savings Plan (mandatory PER), open to companies, which replaces the “article 83” pension contract.

Mandatory Retirement Savings Plan

What is the mandatory PER?

The mandatory PER replaces the “article 83” retirement contract.
This is a retirement savings plan offered for membership for companies, to which the employee is obliged to be affiliated as soon as he belongs to the category of staff covered by the system. Implementing a mandatory PER offers a real social benefit for employees and a real loyalty tool.

To whom it is addressed ?
The company sets up a mandatory PER in a legal act which can be a unilateral decision of the employer or a company agreement or a referendum agreement. This act defines the employees concerned. It can be all staff members, or only certain categories of them (managers, workers, etc.). The category of employees benefiting from the mandatory PER must be defined on the basis of objective criteria. The employees concerned then have the obligation to subscribe to the retirement savings plan put in place.

What is its function ?
A Mandatory PER is made up of 3 separate compartments which offer each employee the possibility of saving for their future retirement, in addition to the payments made by the company.

1- A compartment for mandatory payments
The company funds the individual account of the affiliated employees with regular payments which can be partly financed by the affiliated employee.
The sums saved on this compartment may be subject to early release in certain authorized cases as for the other compartments (but not for the purchase of the main residence) and be paid up in the form of a life annuity on retirement (capital withdrawal not authorized for this compartment).

2- A compartment for the employee’s voluntary payments
If the employee wishes to make payments on his own initiative, he can use his mandatory PER. His payments will benefit from the same taxation as if he fed an individual PER. The sums saved on this compartment may be subject to early release in certain cases authorized as for the other compartments and also for the purchase of the main residence (not authorized for the compulsory payments compartment) and be released in the form of capital and/or life annuity upon retirement.

3- A compartment for employee savings
This compartment can be funded directly by sums from employee savings (profit-sharing and profit-sharing distributed by the employer: provided that the member company has set up a PER Entreprise for the benefit of all salaried staff). It can also be funded by the rights recorded in a time savings account (CET) or, in the absence of a CET, by the sums corresponding to rest days not taken, within the limit of 10 per year.

All payments (profit-sharing, participation, monetization of days of leave not taken or of the CET) made on this compartment benefit from very reduced taxation. These payments are not subject to income tax.

Cases of early release
The sums paid into a mandatory PER are blocked until the employee retires.
Nevertheless, there are several cases of early release, which vary according to the payment compartments:
– acquisition of the main residence only for the sums resulting from voluntary payments and employee savings (participation, profit-sharing, employer’s contribution, CET, etc.);
– invalidity of the holder, his spouse or PACS partner, or his children;
– death of the holder’s spouse or PACS partner;
– expiration of the holder’s rights to unemployment insurance;
– over-indebtedness of the holder;
– cessation of a non-salaried activity of the holder following a court-ordered liquidation judgment.

The Collective Company Retirement Savings Plan

This product succeeds PERCO. Any company can offer a collective company PER to its employees, without its subscription being compulsory. On the other hand, this PER must be open to all employees. Only a condition related to seniority may be required.
The company can transform a PERCO into a collective company PER.
This PER entitles you to tax advantages and the rights of employees are transferable to other PERs. The expiry of the collective PER is the retirement age, but the sums can be released in certain cases which are identical to those of the mandatory PER.

SMAvie, a major player in health, provident, retirement and savings insurance, offers the PER Entreprise SMAvie* which is a mandatory PER allowing the employer to help its employees save for their retirement in privileged conditions. In addition, salaried executives or corporate officers without an employment contract may also benefit from the advantages offered by this contract, under certain conditions.
Thus, the PER Entreprise SMAvie represents a real social benefit for employees and a real loyalty tool because it is a form of deferred salary.
Finally, this supplementary retirement scheme offers an undeniable financial interest for the company and the employee:
– For the company, under certain conditions, compulsory contributions are deductible from the corporation tax base and employers’ contributions are exempt, within certain limits, from social charges (excluding the social package).
– For the employee, within the limits of certain deduction ceilings, compulsory payments are exempt from income tax and voluntary payments are deductible from taxable income.

* PER Entreprise, is a compulsory retirement savings plan (PERO) and a collective life insurance contract with compulsory membership, the guarantees of which are expressed in euros and/or in units of account. Unit-linked products present a risk of capital loss. To find out more, it’s here

This information is based on the regulations in force on April 14, 2022 and does not constitute legal or tax advice or advice. Advertising document, without contractual value – Only the information notice has contractual value.

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