July 4, 2022

What to do with your company retirement savings?

Retirement savings also go through the company. Many employers make products available to their employees to save in this perspective. This is the case of the collective retirement savings plan (Perco) held by 11.2 million holders, according to the French Association of Financial Management (AFG) or even of article 83. This compulsory membership contract weighs nearly a third of retirement savings in France (74 billion), according to the Department of research, studies, evaluation and statistics (DREES) of social ministries. With the arrival of the retirement savings plan (PER), these products are no longer marketed but there are still large amounts stored in them.

“One of the objectives of the Pacte law is the portability of savings,” recalls Guillaume Meyer, director of corporate savings and pensions at Groupama Gan Vie. The logic of PER is to transfer everything to an envelope unique.” Bringing together all your savings in the same contract has several advantages. First, it avoids forgetting small amounts dormant on old contracts scattered to the right and left. Then, it allows to have a better vision of its assets and, thus, to better invest them. Not to mention that old contracts are generally more costly and have a lower quality financial offer. Some company contracts are still single-support, invested on the only fund guaranteed in euros!

What if you have a retirement savings product, a Perco? In practice, you will have no choice. A good number of financial organizations transformed their old devices into PER. “We switched all our inter-company Percos to PER on January 1, 2020,” says Guillaume Meyer. Anyway, while you’re in the job, there isn’t much you can do, especially not transfer your contract. You can do this when you have left the company in question. “If you have access to a collective PER with your new employer, it is in your interest to transfer your old Perco devices there, because it is you who pay the account maintenance fees (from 20 euros to 50 euros per year), when you are no longer part of the company “, underlines the specialist. If your current employer does not offer one, it is possible to transfer your sums to your individual PER.

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Transfer your company pension when you can

It is a little more complex for the old “article 83” (compulsory retirement system in the company). “Some old contracts benefit from pension revaluation rate guarantees and mortality table guarantees, which make it possible to obtain a higher level of income at the exit”, mentions Benjamin Sanson, head of retirement savings and employee savings advice at Mercer France . The point must therefore be studied before any decision is taken. Another argument is for keeping several “small” contracts. The “article 83” are products from which one exits exclusively in life annuity and the transfer within a PER will not change anything (this is the only case where, even with the new PER, the exit is obligatorily done in annuity).

But below a minimum annuity amount, insurers have the option of waiving it and paying the entire capital in one go. Which can be advantageous. Previously set at 40 euros, this minimum amount has been revised upwards. “Since July 1, 2021, if the amount of the pension is less than 100 euros per month, the insurer pays the sum in the form of a capital, indicates Guillaume Meyer. This represents a capital made up of approximately 25,000 to 30,000 euros, which is not nothing. With this new rule, we estimate that two thirds of the insured will leave in the form of a capital. ” However, you will not escape the administrative hassle, since you will have to put together a whole file for each contract at the exit …

Take full advantage of the new corporate PER?

So much for the old devices. What if your company has set up a new PER? As with individual products, you have the option of making voluntary payments, which are deductible from your taxable income. “It is very advantageous when the company also provides for an additional contribution, namely an additional payment from the employer, proportional to yours (the amount of the contribution is defined in advance), recommends Aymeric Champeil, president of My Pension. However, it is necessary to study the conditions for granting it. ” Indeed, it is sometimes reserved for the payment of participation and profit-sharing or days of leave. Another argument in favor of corporate PER: its costs.

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“Overall, collective models remain cheaper and more efficient because companies negotiate prices, says Benjamin Sanson. drop out. ” Because the quality of the financial offer must of course be controlled. There remains one point to be aware of in order to make a choice: the legal form of the PER. While most individual PERs have the format of life insurance, “collective PERs are bank PERs in 90% of cases, underlines Aymeric Champeil. Their tax treatment in the event of death is less favorable than on an insurance PER . ”





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