Faced with the limits of the public system and the changing expectations of employees, companies have every interest in offering effective retirement savings solutions. The PERO (Compulsory Retirement Savings Plan, Plan d’Épargne Retraite Obligatoire) fits fully into this logic. This scheme, still underused, is a powerful tool for social protection and HR retention.
What is the PERO?
The PERO is a group scheme, set up by the employer, to help its employees build up additional retirement income. It can be:
- Entirely funded by the employer
- Or co-funded with the employee
Its strength? A three-compartment structure that gives it flexibility and adaptability.
The 3 compartments of the PERO
- Voluntary payments.
The employee can make free payments (one-off or regular) into their PERO. These amounts are deductible from income tax, within the tax limits provided for.
- Employee savings and untaken days.
The PERO can also receive: incentive bonus (intéressement) or profit-sharing (participation) payments, and up to 10 untaken days of leave, in particular from a time savings account (compte épargne temps).
- Compulsory contributions.
Paid regularly by the employer for each eligible employee, these contributions form the basis of the scheme and the core of its effectiveness.
Why set up a PERO?
For the company:
- Tax deduction of the sums paid
- A social package levy (forfait social) reduced to 16 %
- The option to target certain groups (managerial staff, length-of-service conditions and so on) through objective categories
- Strengthening of the employer brand and retention of talent
For employees:
- Building up regulated and secure retirement capital
- A choice between self-directed or managed handling of their savings
- Possible early release in certain cases: purchase of a main residence, life accident and so on
- Included death cover, with customisable annuity options on exit
Support from MIA
From setting up to operational management, MIA Assurances supports you from A to Z in deploying your PERO:
- URSSAF compliance
- Legal drafting (unilateral decision of the employer, DUE, or collective agreement)
- Integration into the DSN
- HR communication to employees
Would you like to find out more? Contact our pension team for a personalised assessment tailored to your business challenges.
