How can a manager build up additional retirement savings (article 83, PER, end-of-career bonuses)?

Written by Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified, founder of Balmont Conseil (Lyon). ORIAS 13003497. Last reviewed: 23/10/2026.

Here are the retirement tools available to a manager, depending on their status, and the tax treatment of each. The second part deals with end-of-career compensation from the company's perspective.

How can a manager build up additional retirement savings (Article 83, PER, IFC)?

By combining an individual retirement savings plan (PER), which the employee opens themselves, and, if their status and company rules allow, a company-sponsored group plan: the "Article 83" contract, now replaced by the mandatory company PER. End-of-career bonuses (IFC) concern employees and are discussed in the following section.

The individual PER. It is open to all adults. It replaces the popular retirement savings plan and the Madelin contract. Contributions are tax-deductible, up to a personal limit. According to impots.gouv.fr, this limit is set at 10 times % of the previous year's net employment income, with a minimum of €4,710 and a maximum of €37,680. These amounts are based on the 2025 Social Security ceiling (€47,100): 10 times % equals €4,710, and 10 times % equals eight times the ceiling equals €37,680. Unused ceilings from the three previous years are added to this limit. Mandatory employer contributions reduce these limits.

Illustrative example. An executive had €60,000 in net business income in 2025: 10 %s yield €6,000, which is above the minimum but below the maximum. With €400,000, 10 %s yield €40,000: the €37,680 limit applies. Upon retirement, the savings can be paid out as a lump sum, an annuity, or a combination of both.

The "Article 83" contract. This is a group insurance contract taken out by the company for some of its employees. It is replaced by the mandatory company retirement savings plan (PER), whose mandatory contributions from both the employee and the employer are tax-deductible. The tax authorities set the limit at 8 times the annual gross salary, with the salary used for calculation capped at eight times the annual Social Security ceiling. With the 2026 ceiling (€48,060), the’illustrative example This gives: 8 × €48,060 = €384,480 of maximum withheld remuneration; 8 % of €384,480 = €30,758.40. This limit is reduced, where applicable, by exempt employee savings contributions.

The contract must apply to all staff or to an objective category of employees, with a uniform contribution rate. Company officers do not constitute a separate category. They can benefit from it if they fall into a broader category, such as that of senior executives.

Depending on your status.

• Self-employed worker (Majority shareholder of a SARL, managing partner of an EURL, partner of a SNC): the individual PER is the primary tool. You can deduct contributions from your professional income rather than your total income. The exact calculation is detailed in our article on the Madelin and the PER.
• Manager treated as an employee (president of SAS, for example): the individual PER remains open, and the company's collective contract becomes possible if you fall within the covered category.
• Employee savings plans: In companies that employ at least one employee and fewer than 250, the Labor Code opens the company savings plan to the head of the company and, for a company, to its president, its general manager or its manager.

The schemes referred to as "Article 39" of the General Tax Code are defined benefit pension schemes, also known as "top-hat pensions". They are subject to a case-by-case study.

End-of-career bonuses: how to finance them for an SME?

An SME can set aside funds for these expenses in its accounts or finance them through a dedicated insurance contract. Only the contract allows for the deduction of sums upon payment to the insurer; the provision itself is not deductible from taxable income.

What the company owes. An employee who voluntarily retires with at least 10 years of service is entitled to severance pay. The legal minimum is half a month's salary after 10 years, one month after 15 years, one and a half months after 20 years, and two months after 30 years. When the employer forces the employee to retire, the minimum is a quarter of a month's salary per year of service for the first 10 years, then a third of a month from the 11th year onward. A collective bargaining agreement may provide for a higher amount, and in that case, it applies.

Illustrative example, With a hypothetical reference salary of €3,000 and 20 years of service, voluntary departure would result in a severance payment of 1.5 months, or 1.5 x €3,000 = €4,500. Retirement would result in a severance payment of 10 x 1/4 + 10 x 1/3 = 5.83 months, or approximately €17,500. This difference illustrates the significant impact of the chosen method of departure on the final calculation.

Accounting. The commitment must be included in the notes to the financial statements. Recording it in the balance sheet as a provision is an option, which the general accounting plan classifies among the reference methods.

Corporate taxation. The tax authorities prohibit the deduction of provisions for retirement expenses, including retirement severance payments. Actual expenses incurred are deductible. Premiums paid to an insurer are also deductible, subject to the general conditions of deductibility, including the following: the company permanently loses ownership and control of the sums paid. The end-of-career indemnity contract is exempt from tax on insurance contracts (Article 998, 3° of the General Tax Code), under certain conditions:

• it exclusively covers end-of-career benefits;
• the company cannot advance or redeem the value of the contract for its day-to-day management;
• The insurer only pays the amounts owed to the employees, and the related employer contributions.

For the employee. Voluntary departure compensation is subject to income tax and social security contributions, including the general social contribution and the contribution to the repayment of the social debt. Retirement compensation is partially exempt from income tax. It is exempt from social security contributions on the portion below €96,120, provided the total compensation remains below €480,600.

And the leader himself? These amounts are intended for employees. Depending on your status and the existence of an employment contract, they may or may not apply to you: have your case reviewed by a lawyer before setting up a plan.

What we do

Company retirement plans are part of Balmont Conseil's corporate services offering: end-of-career bonuses, employee savings plans, and "Article 83" and "Article 39" contracts. Alexis Sagnier, founder of Balmont Conseil (Lyon, for nearly 14 years), is a financial investment advisor and member of ANACOFI, an insurance broker, ORIAS registration number 13003497. The firm is not independent and receives commissions on the contracts it sells. If you would like to discuss your company's situation with us, the first step is an initial consultation: you tell us your current situation, and we tell you how and where we can help.

Sources

• impots.gouv.fr, «Retirement savings»
• economie.gouv.fr, "How does the individual retirement savings plan (PER) work?"«
• BOFiP, BOI-RSA-BASE-30-10-20, retirement contributions whose deduction is capped (version of 17/02/2026)
• economie.gouv.fr, «Businesses: what changes on January 1, 2026» (2026 Social Security ceiling)
• Retirement insurance, CNAV circular 2024-43 (Social Security ceiling 2025)
• Digital Labour Code, Article L3332-2
• service-public.fr, «Social protection for managers»
• Senate, bill on supplementary pension schemes
• service-public.fr, "Severance pay or retirement allowance"«
• Digital Labour Code, Article D1237-1
• BOFiP, BOI-BIC-PROV-30-20-10-20, provisions for personnel expenses
• BOFiP, BOI-TCAS-ASSUR-10-40-30-80, end-of-career compensation contract
• Accounting Standards Authority, General Chart of Accounts (January 1, 2026)