Group Retirement Savings Plan (Perco)

Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

The Group Retirement Savings Plan (Perco) is a company savings product. New Retirement Savings Plans (RSPs) are available since 1er October 2019, and your Perco can be transformed into a collective company PER (called Pereco or Perecol). Since 1er In October 2020, Perco can no longer be implemented in companies, but existing ones can continue to operate. If you have a Perco, you can continue to make payments or transfer their savings to a new PER.

Warning: the old one Perco and the new Collective company RIP (called Pereco or Perecol) are 2 different devices that co-exist, but that do not offer the same advantages. Your company may offer either device.

Since 1er October 2020, Perco can no longer be implemented in companies but existing ones can continue to welcome new participants, even after 1er October 2020, without any time limit.

If your company offers a Perco, you can continue to make payments.

Warning  

Don't confuse the old one Perco and the new Collective company RIP (also called Pereco or Perecol).

These two products co-exist and do not offer the same advantages, because they do not have the same characteristics.

All companies can offer a Perco to their employees, even if they have not set up a Perco PEE.

If your company offers a Perco, it is open to all employees. However, a seniority condition may be required (maximum 3 months).

The regulation of the plan may provide for the automatic membership of employees. In this case, you must be informed of your membership, under the conditions provided for by the regulation. You then have 15 days to make it known that you refuse to adhere to the plan.

When you retire or take early retirement, if you have already made payments on a Perco, you can continue to do so until you have applied for the release of your entitlements.

If you resign or are fired, you can continue to make payments on your Perco if there are none at your new employer. But you will no longer be able to benefit from abundances from your former employer. In addition, you will be charged a maximum fee for managing these payments.

FYI  

In companies with fewer than 250 employees, the Civil partnership or partner of the head of company with employee status can also benefit from Perco.

When you are hired, the employer must give you an employee savings book indicating the measures implemented in the company.

If the company has a Perco in place, it must provide you with a policy that informs you of the plan and its contents.

At least once a year, the company must provide you with a status report. This statement must indicate your choice of allocation of Perco savings and the estimate of its value at December 31 of the previous year. It must also show the payments and withdrawals made during the previous period.

When you leave the company, you must receive a summary statement of all money and securities saved or transferred. If you wish to continue to benefit from the plan, you will have to pay a custody account keeping. The company may also decide to cover these costs. The summary statement given to you on departure must specify whether the costs are covered by the company or by debiting from your assets.

Employee's payments

Employee payments on Perco are optional, unless the company regulations provide for a minimum annual payment. In this case, the minimum annual payment shall not exceed the sum of €160.

To power your Perco, you can use the following amounts or entitlements:

  • Sums from profit-sharing
  • Sums from the participation
  • Amounts from the value-sharing premium (PPV) or the premium from the company valuation sharing plan (PPVE)
  • Amounts from the transfer of other plans of employee savings
  • Entitlements on a time savings account (CET)
  • In the absence of CET, amounts corresponding to days of rest not taken, up to a limit of 10 per year
  • Voluntary cash payments.

Voluntary payments are capped at a maximum of 25% of gross annual remuneration.

Warning  

Only the portion of annual leave not taken exceeding a minimum of 24 days may be paid to the Perco.

Payments by employer

The Perco can be fed by additional company payments, called abundances. The contribution may not exceed 3 times the amount you paid yourself, nor be greater than €7,690.

In addition, even in the absence of payment by the employee, if the Perco's rules so provide, the company may make an initial payment and periodic payments on the Perco.

The total amount of the employer's payments may not exceed €3,000 by beneficiary and by calendar year or €6,000 per beneficiary and per calendar year if there is a voluntary participation or incentive agreement.

Warning  

Additional payments made by companies of at least 50 employees are subject to a contribution, called social package.

Modes of placement

Perco must offer you at least 3 investment vehicles with different management orientations.

You must also have the option of choosing an investment that will gradually reduce financial risks. Unless you choose otherwise, the amounts paid into the fund are automatically invested in this way.

In addition, the Perco regulation must provide for decision support to accompany you in decision-making.

Amounts collected under Perco can be invested in FCPE that hold unlisted securities or securities of the company that created Perco, up to 10%.

Period of time for blocking sums

The amounts paid on Perco are frozen until retirement.

However, you can request the early release sums in the following cases:

  • Death (you or your Civil partnership or partner)
  • Disability (you or your Civil partnership or partner, your children)
  • Employee over-indebtedness
  • Acquisition of the principal residence
  • Rehabilitation of the main residence following a natural disaster
  • Expiry of the employee's entitlement to unemployment insurance.

No time limit is required for the request for early release. There is an exception for the purchase or refurbishment of the principal residence, for which the period is 6 months.

Warning  

In the event of the beneficiary's death, there is no time limit imposed on the beneficiaries to make the request. However, they will not benefit from the non-taxation of capital if they apply more than 6 months after death.

Exit the Perco

You are entitled to the payment of the amounts from your retirement.

The sums are generally issued in the form of life annuity acquired for consideration.

However, the Perco Regulation may also provide for the issue of capital, paid in one installment or in installments. The regulation specifies how you can express your choice.

Abundance of company

The company's contribution is exempt from income tax up to €7,690.

Voluntary payments of the employee

Voluntary payments of the employee resulting from the profit-sharing and participation are exempt from income tax within the limit of €36,045.

Other voluntary payments are not exempt from tax.

Income from securities held in the plan

If reinvested in the plan, the income from the securities held in the plan is exempt fromincome tax.

If they are not reinvested in the plan, they are taxable (income tax and social levies at the rate of 17.2%).

Exit the Perco 

The taxation of the amounts withdrawn from Perco depends on the method of exit.

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Life annuity outing

The life annuity received from Perco is calculated according to the rules of life insurance.

The calculation takes into account the amount of your savings, your age and your gender.

The annuity is subject to income tax, in the life annuities acquired for consideration.

This scheme allows the exemption of part of the pension. The exempt part of the pension varies between 30 and 70% depending on the age of the holder.

The taxable part of the annuity is subject to social security contributions at the rate of 17.2%.

Capital outflow

The share of the capital corresponding to the employee's voluntary payments is exempt from income tax and social security contributions.

The share of the capital corresponding to the gains realized during the duration of the plan is exempt from income tax but subject to social security contributions, at the rate of 17.2%.

FYI  

In the event of a transfer of Perco savings to a collective Per, the social security contributions will be calculated on the basis of the rates in force at the time of the payments.

FAQ