What are the different types of PER?

The PER designates the new retirement savings plan which was put in place by the Pacte de
2019. The objective of this new product is to harmonize and simplify the old system
made up of PERP, Madelin, PERCO or article 83 type savings. From now on, the PER
is based on three types of investments:

● The individual PER
● The optional company PER
● Mandatory company PER

With this type of investment, it is possible to build up capital or an annuity for
retirement, but assets can also be released early for
finance the purchase of a primary residence.

The individual retirement savings plan

This retirement savings plan is accessible to all without any age limit, whatever the
socio-professional category to which we belong. It is therefore a solution that can
be used by employees, TNS and even job seekers. The individual PER
can take the form of a securities account or an insurance contract. Institutions
likely to offer this type of savings are insurance companies, THE
asset managers, mutual societies, credit institutions or even
provident institutions. Today it is very easy to manage the establishment of its
PER online. However, it should be noted that funds resulting from a transfer (from a collective PER)
can be taken out as capital, but only as an annuity at the end and that they cannot
be subject to early release.

Group retirement savings plans

There are two types of business PER

The optional collective PER (former PERCO)

This first PER compartment is optional. It allows all employees of a company
to build up savings throughout their professional life by benefiting from a
a number of tax advantages. From October 1, 2020, this optional collective PER has
replaced the PERCO. Voluntary payments are now tax deductible in
a certain extent. The funds can be transferred to another company PER or
towards an individual PER (in the event that the employee becomes TNS or job seeker).
Therefore, the advantage with the old savings plan is that it is more advantageous of a
tax point of view and that it offers better portability. With this type of PER, it is
possible to build up capital or an annuity for retirement or to finance the purchase
of a main residence (by requesting early release of funds).

The compulsory collective or categorical PER (former article 83)

This type of PER is offered by the company to its employees. This can be implemented
for all employees of a company or for a category of employees
previously defined. This can contain different types of assets:

● Assets from voluntary payments of the employee
● Mandatory employee and employer contributions
● Sums of money from employee savings (bonus or participation in
company profits)
● Payments from the time savings account (paid leave not taken)
● Amounts transferred from another business PER

Here again, this sum will be repaid upon retirement of the employee under the
form of capital or an annuity. However, it is not possible to make an exit
advance funds to purchase your primary residence. Just like the collective PER
optional, it benefits from better portability.