The French Financial Markets Authority has published an explainer on how employees can withdraw funds held in employee savings arrangements, including the company savings plan (PEE) and the collective company retirement savings plan (PER collectif), and in which circumstances early release may be possible. It sets out the main lock-up periods, how withdrawal requests are submitted to the institution managing the plan, and the key tax principles that apply when funds are released. For PEE, the AMF notes that contributions are generally locked for five years, after which amounts can be withdrawn in one or more instalments, while PER collectif is generally locked until retirement with different payout options at retirement (life annuity, lump-sum capital, or a combination). The guidance also compiles the main life events and situations that can qualify for early release depending on the product, and highlights that some grounds are available only in specific circumstances (notably certain energy renovation works and caregiver situations), so eligibility should be checked before applying. On tax, it indicates that PEE withdrawals are exempt from income tax but gains remain subject to social contributions, while PER collectif taxation depends on the type of contributions and whether benefits are taken as capital or an annuity; it also flags that mandatory-contribution amounts in a PER collectif cannot be used for early release to purchase a primary residence. The AMF adds practical safeguards to avoid disputes, including applying within the relevant deadlines, ensuring only amounts invested before the triggering event are requested, and submitting the appropriate supporting documents. It also reminds savers to keep their contact details up to date after leaving an employer, notes that plan-related fees may shift to the employee (including a EUR 20 per year cap for Perco management fees), and that processing times for release requests vary by financial institution.
France Autorite des marches financiers 2025-03-17
French Financial Markets Authority publishes guidance on early release of employee savings and retirement plans
The French Financial Markets Authority issued guidance on withdrawing funds from employee savings plans, detailing lock-up periods, withdrawal procedures, and tax implications. For the company savings plan (PEE), contributions are locked for five years, while the collective company retirement savings plan (PER collectif) is generally locked until retirement. The guidance also outlines conditions for early release, tax treatment, and safeguards to prevent disputes.