The PERCO is a solution that offers employees an extra source of income on retirement, possibly with the help of their employer and an advantageous tax framework.
They are set up to receive profit shares, incentive plan payments, employer matching contributions and voluntary payments by employees. They may also receive sums transferred from the PEE, entitlements transferred from the Comptes Epargne Temps or CET (Time Savings Account), within a limit of 10 days per year, and, failing this, sums corresponding to paid holidays not taken (maximum of 5 days per year).
You can enjoy the benefits of a PERCO if your company has set up this savings solution following the signing of a collective or company-wide agreement, or a unilateral decision by the employer. You may need to have worked for the company for a certain amount of time, but this time should be no longer than 3 months.
Only companies that have already set up a Plan Epargne Entreprise or PEE (Company Savings Plan) may decide, in accordance with a collective agreement, to offer a PERCO to their employees. Once a PERCO is in place, directors and similar employees, and their spouses working in the same company, may also benefit from it, providing that the company usually employs between 1 employee (in addition to the director) and 250 employees.
Sums invested in PERCOs are locked up until the employee's retirement, except in the cases of early release specific to PERCOs.
When you retire, you can recover your savings in the form of:
- a lump sum exempt from income tax,
- an annuity that is partially taxed according to the age at which you retire,
- both at the same time