LOI PACTE – From October 1, new retirement savings products will be able to be marketed in France, thanks to the Pacte law. We will explain everything to you.
[Mis à jour le 30 septembre 2019 à 9h10] Retirement savings are changing their face with the Pacte law. In order to simplify the complex landscape of retirement savings, the executive launched the creation of the Retirement Savings Plan, also called PER. The marketing of the three products must start from Tuesday 1is October 2019. In detail, there are plans to launch an individual retirement savings product, simply called the Retirement Savings Plan, as well as two group products. If you already have a retirement savings plan, don’t panic. Old devices should not disappear before 1is October 2020. Find in this article all the information on these new retirement savings products and the devices that should change with the Pacte law.
To make retirement savings products more attractive, the government has decided to simplify the landscape, by creating three products under the Pacte law. The first is an individual retirement savings product: the individual retirement savings plan (PERI). It should replace the PERP (People’s Retirement Savings Plan) and the “Madelin” system, reserved for self-employed workers. Contracts may be opened in the form of insurance contracts or securities account. The Pacte law also provided for the creation of two collective retirement savings products, the collective PER (PEREC) and the compulsory PER (PERO), to replace the Perco (collective retirement savings plan) and the former article 83. One of them will be open to all employees and the other will be reserved for certain categories of employees only.
As reminded Income, each product will be divided into three compartmentsdepending on the nature of the payments: voluntary payments made by the saver, payments from employee savings (profit-sharing, participation, etc.) and compulsory payments by the employee or the employer. Depending on the nature of the payments made, the terms of exit and taxation will change. Find all the information on the PER in our article.
Today, only 16% of employees benefit from an employee savings plan within their company. The Pacte law provides for a tax relaxation on profit-sharing. The social package, which corresponds to the taxes paid by the employer when it distributes profit-sharing to its employees, has been abolished since January 1, 2019 for companies with less than 250 employees. For companies with less than 50 employees, the social package has been abolished on all employee savings payments (profit-sharing, participation and the employer’s contribution) The State also wishes to encourage the implementation place of PERCO in companies by removing the prerequisite for the latter to have a company savings plan (PEE).
Life insurance is an investment very popular with the French. But the majority of savers place their savings in euro funds. The government wants to guide savers towards eurocroissance funds, a product launched in 2014 and which has had little success. These funds are not available at all times, unlike life insurance. It offers a capital guarantee only at maturity and also contains a share invested in shares. The financial product should be simplified. Objective: to provide resources to businesses. The government has announced an incentive to transfer savings from life insurance to retirement savings. As stated earlier, any redemption of a life insurance policy of more than eight years will allow you to obtain a tax deduction, if the sums are reinvested in a retirement savings plan and the redemption takes place at least five years before retirement. This system is in place until 1is January 2023.