Company retirement savings plan (PER): Optional Pereco or mandatory Pero, what's the difference?

The company retirement savings plan (PER) exists in two forms. The collective company PER (Pereco or Perecol) can be offered by any company to its employees: it replaces the Perco. The mandatory company PER (Pero) is a plan to which membership is compulsory, for all employees or for defined categories: it replaces Article 83 contracts. According to the information sheet on service-public.gouv.fr, each PER, individual or collective, is organized into three compartments, according to the source of the funds.

This page describes the structure of these two plans. It does not specify the maximum tax-exempt employer contribution in euros; this should be verified with the source. It does not address the carryover of unused contribution limits, the total number of withdrawals, the social security contribution, non-residents, or the taxation of the annuity. For information on the deduction of mandatory contributions, please see our page on Article 83.

The two shots side by side

Mandatory enrollment and existing plans

The BOFiP states that supplementary retirement contracts "to which employee affiliation is mandatory" can only be set up "from October 1, 2020, in the form of a PERO".

The BOFiP adds that contracts put in place before this date can nevertheless accommodate new members.

An existing PERCO (collective retirement savings plan) can be converted into a company-wide PER (collective retirement savings plan), according to the PERCO information sheet on service-public.gouv.fr (verified on June 1, 2026). The company can also combine the optional and mandatory collective retirement savings plans into a single plan. Existing plans, such as the PERCO and Article 83 plans, can be transferred to this single plan. For information on existing PERCOs, see our page on existing plans and their conversion.

The three compartments

Mandatory contributions cannot be withdrawn like voluntary contributions (see the section on withdrawal).

The collective retirement savings plan: what the company decides

The collective plan can be created at the initiative of management or by agreement with employee representatives. The information sheet specifies that, if a union representative or a works council exists, the employer must conduct prior negotiations with them before creating the plan.

A minimum length of service may be required, up to a maximum of three months. The plan may also include automatic enrollment for all employees, who then have 15 days to decline. In companies with fewer than 250 employees, the spouse or civil partner of the business owner can also access the plan, provided they have employee status.

As long as the employee works in the company, the management fees of the collective PER are covered by the employer.

What the employee can pay into it

The document lists the possible payments:

• voluntary contributions: the information sheet indicates that there is no limit on these contributions, but the tax deduction is capped (see below); ;
• profit-sharing and employee participation; ;
• all or part of the value-sharing premium; ;
• the rights recorded in a time savings account; ;
• In the absence of a time savings account, sums corresponding to unused days of rest, up to a limit of 10 days per year.

The employer can contribute to the plan. According to service-public.gouv.fr, this contribution cannot exceed three times the amount paid by the employee, nor is there a maximum limit in euros. This limit is not included here; it should be verified with the source (service-public.gouv.fr, impots.gouv.fr) and in your plan's rules.

The mandatory PER: what the company decides

The categories of eligible employees must be defined. The plan can be funded by mandatory employer contributions. The BOFiP (French Official Tax Bulletin) specifies that PERECO and PERO plans can also receive employee savings contributions.

Withdrawal

Collective plan

At maturity, the holder requests that the savings be paid out as a lump sum, as a life annuity, or partially as a lump sum and as an annuity.

Mandatory plan

The rights accrued from mandatory contributions are necessarily paid out as a lifetime annuity. In its section on the company-sponsored group retirement savings plan (PER), the information sheet indicates that if the monthly annuity payment does not exceed €110, the annuity can be converted into a lump sum by mutual agreement between the insurer and the annuity beneficiary. For the mandatory plan, the information sheet indicates that lump-sum withdrawals can be made in installments.

Early release before retirement

The information sheet lists the following cases of early withdrawal, some with specific categories or conditions: death of a spouse or civil partner, disability (category 2 or 3), serious illness, disability, or particularly serious accident affecting a dependent child, excessive debt, expiration of unemployment benefits or cessation of duties as a company officer, cessation of self-employment following bankruptcy proceedings, and purchase of a primary residence. For the purchase of a primary residence, the rights resulting from mandatory contributions remain frozen. This page does not provide a total number of cases: see our page on early withdrawal from the PER (Retirement Savings Plan).

Leaving the company: the transfer

For both plans, the information sheet indicates a maximum period of 3 months and a free transfer after at least 5 years of ownership. The other rules differ:

• Plan required. The transfer is possible when the employee is no longer required to participate, for example, upon leaving the company. Before 5 years of holding the plan, fees are limited to 1% of the accumulated savings.
• Collective plan. The transfer is possible at any time after leaving the company. As long as the employee works there, the record limits the transfer to one every 3 years. Before 5 years of holding, the fees are limited to 1 % of the outstanding balance.

The plan rules and the administrator will specify the next steps. See our page on transferring a PER.

Default management

For both the group retirement savings plan (PER collectif) and the mandatory group retirement savings plan (PER obligatoire), the information sheet indicates that the management of contributions follows the principle of managed investment. For the group PER, it specifies that there are four investment profiles for retirement (conservative, balanced, dynamic, aggressive) and that the balanced profile applies by default. Also for the group PER, the information sheet indicates that it must offer at least one alternative investment option, which notably allows investment in a socially responsible investment fund. A plan invested in market-based funds carries a risk of capital loss. See our page on managed investment.

Payments and taxation upon entry

• Voluntary contributions are deductible from taxable income for the year if made before age 70, up to the limit. The BOFiP (French Official Tax Bulletin) indicates that, as of January 1, 2026, they are no longer deductible when the account holder is 70 years of age or older on the date of the contributions.
• For 2026, the sheet gives the following ceiling: the higher of 10 % of the professional income of 2025 net of contributions and expenses, with a maximum of €37,680, or €4,710.
• The account holder may waive the deduction. For the PERECO, the BOFiP specifies that this option must be exercised no later than the payment to the plan manager and that it is irrevocable.
• Employee savings amounts voluntarily allocated to the company retirement savings plan (PER) are exempt from income tax.
• In the event of a capital withdrawal, the portion resulting from deducted voluntary contributions is taxable without the 10 % allowance.
• For interest received from January 1, 2026, the sheet gives an overall flat-rate levy of 31.4 %.

Numerical example (fictitious profile)

Situation. Sophie, 41, is an employee of a company that offers a group retirement savings plan (PER). Her 2025 net professional income, after contributions and expenses, is €62,000. She plans a voluntary contribution of €1,000 in 2026. Assumptions: the plan rules allow for employer matching up to three times her contribution, the maximum employer matching contribution is not reached, and no other tax-deductible contributions are made during the year.

Issue. She wants to know how much she can deduct, and how much the employer can add to her payment.

Strategy. The firm reviews with her the plan's settlement and the deduction limit.

Result.

The €1,000 contribution remains below the €3,200 ceiling: it represents approximately 31% of this ceiling. The information sheet mentions the reduction of the ceiling through employer matching contributions in the section dedicated to individual retirement savings plans (employer matching contributions, up to the amount exempt from income tax): its application to your plan should be verified. With an income of €30,000, the ceiling before reduction is €4,710 (the minimum); with €500,000, it is €37,680 (the maximum). This profile is hypothetical. The figures illustrate the mechanism and do not predict the outcome for your specific situation.

What changes depending on your situation

• The form of your company plan: collective, mandatory, or single plan.
• The plan's rules: seniority, automatic enrollment, matching contributions, beneficiary categories.
• Your age, in relation to the 70-year threshold for voluntary contributions.
• Your project to leave the company or to unblock.
• Your tax residence, which this page does not address.

The rule depends on your situation. No results are guaranteed.