Is your company thinking about setting up a Retirement Savings Plan (RSP)? 172,000 French companies choose to offer this scheme to their employees as the RSP does indeed have many advantages. So, how do you set up a company RSP? And why is it so beneficial for you and your employees? Here is everything you need to know from MIA Assurances!
The compulsory RSP (PER in French and also known as a PERECO), is an attractive savings plan that allows you to build up additional income for retirement. The company RSP will allow your employees to invest savings and make voluntary or mandatory optional payments.
The RSP allows you to benefit from supplementary income when you retire. The money is released in the form of a 100% lump sum or an annuity. Certain cases of early release are provided for under French legislation: the acquisition of your main residence, expiration of entitlement to unemployment benefits, disability (find out more at service-public.fr).In addition, voluntary payments made into the RSP will be deductible from your employee’s taxable income within the legal limits! These are all advantages that will appeal to your employees and help build loyalty. And, as an employer, you should know that any payments made into your employees’ RSP will be exempt from Social Security charges!
To begin with, you will need to check whether specific conditions have been formalized in your company, through an arrangement or collective bargaining agreement. If this is not the case, you can opt for a unilateral decision by the employer. Next, you have to look at the options available to you: there is a wide range of solutions on the market! To save you time and money, work with an insurance broker who will run a comparison for you. Once you have set up and activated the plan, you will need to inform your employees and tell them how they can enroll.
MIA Assurances, a broker that has been assisting companies for almost 20 years, will help you identify the best plan on the market: a winning combination of benefits and price! So don’t hesitate to ask us for a free, non-binding review.