How to use a Retirement Savings strategy to retain your employees and boost your employer appeal
France’s PACTE Law redrew the map of employee savings schemes by launching the PER retirement savings plans. These schemes – the collective PER and the mandatory PER – gave employees a not inconsiderable tax break and income supplement on retiring.
The regulatory context surrounding retirement has changed, creating new expectations among employees. With the collective PER or the mandatory PER, retirement savings become an effective means of attracting and involving employees with a view to retaining them. Drawing on its 30-year-long experience, VERLINGUE has developed expertise in designing and rolling out retirement savings solutions and specific, end-of-career support and guidance for employees over the age of 58. Take advantage of these tailored solutions developed by our experts!
France’s PACTE Law (Action Plan for Business Growth and Transformation) & retirement savings: how can companies make sure their systems toe the line?
As of the 1st of April 2020, companies may no longer subscribe to “Article 83” or “PERCO” supplementary pension schemes for their employees. Only the new PER retirement savings plans, who benefit from the full range of possibilities and benefits of the PACTE Law, may be set up for employees. To transform your pre-existing schemes, inform your employees of the new provisions and arrange for their savings to be transferred to the new schemes, our experts provide guidance and support with the set-up, regulatory compliance and monitoring of your new schemes.
What you need to know:
The PERCO collective retirement savings plan is open to all company employees, with no obligation to subscribe, though there may be a mandatory seniority condition (three months maximum)
- All companies can offer their employees a PER, even if they have not set up a company savings plan (or PEE in French).
- It can be set up at your initiative or by agreement with the employee representatives (when there is at least one union representative or a social and economic committee (CSE) in the company, a prior negotiation with the rep or the committee is required).
- Membership is optional, but the regulations may stipulate the automatic membership of all employees.
The Mandatory Company PER is a savings plan open to all of a company’s employees or restricted to certain categories of employee. The employees concerned are obliged to subscribe.
- It can be created at your initiative or by ratification of an agreement with the majority of the employees or by a collective agreement.
- The company must inform the employees concerned that their membership of the plan is mandatory; it must also give them a copy of the regulations governing the Mandatory PER.
- The retirement savings approach offered by the company must be suited not only to the employees but also to the defined HR policy.
Our experts can guide you with this because, when managed from a wide-angled view, it gives your company the image of caring about its employees and fulfilling its role in society.
Meet our expert
Philippe Gibeaux
Pension Plan Director
Discover our solutions
The purpose of collective personal protection is to provide your employees with protection against the vagaries of life, in the event of accident or illness. In particular, collective personal protection makes it possible to compensate for the loss of income and thus maintain the employee’s standard of living or that of their family.
Absenteeism, which has been exacerbated since the health crisis, has a direct impact on companies’ performances. It is a major economic and social issue. If companies are to rein in absenteeism and mitigate its effects, they must first identify and understand its root causes so that they can take the appropriate steps.
