France's Autorité des marchés financiers published an explainer on the Plan d’épargne retraite (PER), summarising how the retirement savings plan operates, the available plan types, and the main rules on investing, transfers, withdrawals and tax treatment. It notes that the PER, introduced under the PACTE law to simplify retirement savings products, is progressively replacing earlier schemes that have not been marketed since 1 October 2020. The guide distinguishes between the individual PER (which can be structured as an insurance contract or as a securities account and must be sold with advice aligned to the investor’s risk profile), the collective workplace PER (which may include default enrolment and where employers must cover certain fees and inform employees of applicable fees when they leave), and the mandatory workplace PER (compulsory for covered employees). It explains that PER assets are invested in funds, with “managed” lifecycle allocation as the default option, and sets out contribution sources including voluntary payments, transfers, employee profit-sharing and employer contributions, and mandatory employee and employer payments for the mandatory PER. On portability, it highlights a transfer fee cap of 1% within the first five years and free transfers after five years or at retirement, alongside constraints such as transfers out of a collective PER only every three years while employed and transfers out of a mandatory PER only once the employee is no longer required to participate. The note also outlines retirement benefit options (annuity, lump sum or a mix), restrictions for mandatory contributions in the mandatory PER, permitted early release cases including primary residence purchase subject to limits, and the fact that taxation depends on the plan and payment type, the deductibility choice for voluntary payments, and whether the benefit is taken as capital or an annuity.
France Autorite des marches financiers 2025-03-17
France's Autorité des marchés financiers publishes a practical guide to the Plan d’épargne retraite
France's Autorité des marchés financiers released an explainer on the Plan d’épargne retraite (PER), detailing its operation, types, and rules on investing, transfers, withdrawals, and tax treatment. The PER, introduced under the PACTE law, replaces older schemes and includes individual, collective workplace, and mandatory workplace plans. Key features include managed lifecycle fund allocation, contribution sources, transfer conditions, retirement benefit options, and tax implications based on plan and payment type.