At MIA Assurances, we support your clients across their entire employee benefits ecosystem, health, life & disability, retirement, and savings, through a fully integrated advisory approach.
Within this broader framework, the Mandatory Corporate Retirement Savings Plan (PERO) stands out as a practical and strategic tool to help employees build long‑term supplemental retirement income.
Our conviction: protect today, plan for tomorrow.
This long‑term vision shapes the way we work alongside your advisory teams every day.
What exactly is the PERO?
The PERO is a mandatory, employer‑sponsored retirement plan covering all employees or specific objective categories. It replaces former “Article 83” contracts and is aligned with the PACTE Law, which introduced default lifecycle investment management, contribution‑based compartments, and transferable rights across PER vehicles.
Key structural elements
- Implementation
Employer decision, collective agreement, or majority employee ratification. - Eligibility
All employees or clearly defined objective categories (based on regulated criteria). - Investment management
Default lifecycle strategy (risk gradually reduced over time), with optional self‑directed investment depending on the plan. - Payout options
Lump sum and/or annuity depending on contribution type and plan rules.
A growing trend: Article 83 migrations and new PERO implementations
We are seeing a clear acceleration across the market:
- Migration of Article 83 plans to PERO, facilitated by the “Green Industry” law (structured collective transfer rules, employee information obligations, defined timelines).
- Strong adoption among SMEs and mid‑sized companies seeking a coherent and streamlined social benefits framework, aligned with health and life & disability coverage.
The essential takeaway:
PERO offers simplified administration (single plan, compartments, portability) and fits seamlessly into existing benefits structures.
2026: What changes for PER / PERO taxation?
Since January 1, 2026, the CSG rate on certain investment gains has increased to 10.6%, bringing total social contributions on gains to 18.6% (up from 17.2%). As a result, the flat tax (PFU) rises to 31.4% for the affected income.
This applies to PER and PERO payouts (capital or annuity, depending on the source of contributions).
Key impacts to understand
- The increase applies only to taxable gains at payout; during the accumulation phase, savings continue to grow without annual social taxes on unit‑linked investments.
- The change does not affect how employees save (contributions, investment choices, switches).
- The priority now is to update retirement projections, adjust payout scenarios, and fine‑tune employee education.
In practice:
Despite the rise to 18.6%, PERO remains highly attractive (e.g., tax deductibility on voluntary contributions, long‑term compounding). The key is to incorporate these new parameters into employee guidance.
Three strategic design decisions for a successful PERO
1) Contribution structure
Define who contributes what, at what level, and under which rules (mandatory employer share, matching components, voluntary contributions). Goals: internal fairness, clarity for employees, and budget control for employers.
2) Investment strategy
Select the lifecycle curve (conservative, balanced, dynamic), investment vehicles, and end‑of‑career de‑risking approach. Document risk tolerance and lifecycle allocation cases.
3) Payout scenarios & employee education
Model various lump‑sum/annuity combinations per compartment, explain the impact of the 2026 social tax update, outline installment options, and address special cases (small annuities, phased withdrawals, early‑release events).
Migration from Article 83: 2024–2026 watchpoints
- Collective transfers simplified: formal processes secured by law (agreement, employer decision, employee ratification), with clear information obligations.
- Timelines and fee caps apply, with specific provisions for transfer value adjustments where euro‑funds show unrealized losses.
- Change management is essential: mapping populations, clearly explaining differences between Article 83 and PERO, providing guided support (Q&A, webinars, employee notices).
Why the PERO remains a strong, future‑proof pillar in 2026
- Better clarity for employees: one framework, lifecycle management, transferable rights.
- Operational efficiency: unified processes (enrollment, investment options, reporting), improved employee experience.
- Social value creation: coherent integration with health and disability coverage; a clear employer message —
“We protect today, we prepare tomorrow.” - Budget optimization: targeted contribution strategies, tailored matching options, and education to help employees value the plan within their total rewards package.
Explaining “18.6%” simply — an example
Social contributions on certain investment gains increase from 17.2% to 18.6% in 2026 (CSG rising from 9.2% to 10.6%).
For an employee withdrawing €50,000, including €15,000 in gains, the increase is +1.4% on the gain portion, i.e., €210.
The net effect depends on the chosen mix of lump sum vs. annuity and related tax options.
How MIA Assurances supports you
- Compliance & governance: securing legal documentation and HR processes.
- Plan design: contribution architecture, investment profiles, de‑risking rules, exit options.
- Engagement & adoption: communication kits, simulators, onboarding pathways, Q&A webinars.
- Ongoing monitoring: coverage metrics, satisfaction, enrollment rates, budget and financial tracking.
Our objective:
A clear, secure, and operational PERO, seamlessly integrated into your internal processes — and fully understood by employees.