If you are looking to begin benchmarking employee benefits in France for 2022, look no further than this Market and Benchmark Insight Report for France – 2022, provided by Gerep, Asinta’s employee benefits consulting Partner in France.
Inside you’ll find detailed information about the mandatory and supplementary employee benefits norms for employers with employees in the country. A summary of mandatory employer contributions and an overview of common perks are also provided in the report.
The following is an excerpt from the retirement section:
Retirement Benefit Providers
Retirement benefits are provided through the general plan under the old-age insurance branch. Employers must also provide retirement benefits through complementary plans administered by the AGIRC-ARRCO Federation. The AGIRC-ARRCO Federation was established following the merger of the Association for Employees’ Supplementary Plans (ARRCO) and the General Association of Retirement Institutions for Executives (AGIRC) into a single plan.
Employers must provide supplementary retirement benefits where prescribed under a collective agreement or referendum (see Typical Employer Practice for detail). Employers are required to provide termination indemnities when the employee leaves service due to retirement (see Termination Indemnities section for detail).
Typical employer practice
Around three-quarters of leading multinational and local employers currently provide supplementary retirement benefits that are typically provided through:
- PERECO (PER d’entreprise collectif) — a collective retirement savings plan (replaces PERCO plans), and
- PERO (d’épargne retraite obligatoire) — mandatory corporate retirement savings plan (replaces article 83 plans).
PERECO and PERO plans were launched on October 1, 2019, to accept contributions and transfer PERCO and article 83 plan funds. No new PERCO and article 83 plans were established as of October 1, 2020. Where an existing PERCO plan is converted or transferred to a PERECO before January 1, 2023, capital gains withdrawals will continue to be subject to the historical social security rate in respect of the sums placed in the PERCO plan before January 1, 2018.