PERCOI simulator: the pooled group retirement plan for SMEs

Simulate your PERCOI

The simulator isolates the cumulative employer contribution. Your data is neither stored nor transmitted.

Why the PERCOI brings SMEs into the supplementary retirement system

Setting up a company-specific retirement plan requires negotiating a structure, assuming its management and fixed costs—a burden beyond the reach of most SMEs. The PERCOI solves this problem in exactly the same way that the PEI solves that of employee savings plans: by pooling management between several companies around a common framework agreement.

The SME joins a pre-existing system, without having to negotiate or manage its own plan. This is the gateway to a genuine supplementary retirement policy for employees, with all the advantages of a group retirement savings plan: employer contributions exempt from income tax, funding through profit-sharing and employee stock ownership plans, and payouts as a lump sum or annuity.

Combined with profit-sharing and employee participation, the PERCOI becomes an even more powerful deferred compensation tool as it serves two objectives at once: to retain employees through the prospect of additional retirement, and, in structures with fewer than 250 employees, to benefit the manager himself, who can include himself in the scheme and capture the matching contribution.

The 3 levers that this simulator reveals for SMEs

Lever 1: a pension policy without structural costs

The PERCOI (Intercompany Retirement Savings Plan) pools management: the SME does not bear the cost of setting up and administering its own plan. Yet it offers its employees a genuine supplementary retirement income, with employer contributions exempt from income tax. For an SME competing for talent, this is a cost-effective way to attract employees—often more effective than a gross salary increase, a large portion of which is taken up by social security contributions and taxes.

Lever 2: Involve the leader and capture the matching contribution

In companies with fewer than 250 employees, the business owner can benefit from the PERCOI (Intercompany Retirement Savings Plan) just like their employees. It's a tax-efficient way to build personal retirement savings: employer contributions are tax-deductible and exempt from income tax for the business owner. When properly structured, it effectively complements other executive compensation options without the complexity of a customized, sector-specific plan.

Lever 3: Link with profit-sharing and participation

The impact of the PERCOI (Intercompany Retirement Savings Plan) is amplified when combined with a profit-sharing agreement and employee share ownership plan. Bonuses paid into the plan are exempt from income tax and benefit from employer matching contributions, instead of being received and taxed. For both managers and employees, the combination of profit-sharing, employee share ownership, and PERCOI constitutes a highly tax-efficient deferred compensation scheme—best developed with the guidance of an advisor.

Case study: David, 44 years old, manager of an industrial SME with 30 employees in Strasbourg

David joins a PERCOI (employee savings plan) for his SME and includes himself in it. He directs his profit-sharing bonus—approximately €4,000 per year—to the plan, which matches the contribution at 50% over 15 years at a return of 4%. Here is the effect of the matching contribution alone:

By allocating his profit-sharing bonus to the PERCOI (Company Retirement Savings Plan), David avoids income tax on entry—at the 41 % tax bracket, the savings are substantial—and receives €2,000 in employer matching contributions each year. Over fifteen years, his retirement savings reach two and a half times what he would have retained by receiving and paying taxes on his bonuses. Meanwhile, his 30 employees benefit from the same plan: the PERCOI fosters employee loyalty as much as it benefits the business owner.

The lesson for SME managers: the PERCOI (Intercompany Retirement Savings Plan) is not just a social benefit; it's a tax-efficient way to build personal retirement savings, accessible without the complexity of a sector-specific scheme. Combined with profit-sharing and employee stock ownership plans, and integrated with other executive compensation mechanisms, it rivals solutions that are far more cumbersome to implement.

Group retirement savings, finally within reach of SMEs

This simulator isolates employer contributions. However, the PERCOI (Intercompany Retirement Savings Plan) operates on two levels: as a retirement savings plan that fosters employee loyalty, and as a personal retirement savings vehicle for the executive. The sizing of the employer contribution, its integration with profit-sharing and employee stock ownership plans, and the joint optimization between the company and the executive determine its true effectiveness.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows us to design group retirement plans and executive strategies together, selecting solutions from across the market without pushing our own proprietary products. Let's make an appointment to structure your SME's PERCOI and your management strategy.

Frequently Asked Questions

What is the difference between the PERCOI and the classic collective company PER?

The PERCOI is the inter-company version of the collective PER: it is shared between several companies under a common framework agreement, whereas a traditional collective PER is specific to a single company. The advantages are identical—employee contributions exempt from income tax, lump-sum or annuity payouts, and funding through employee savings plans—but the PERCOI spares SMEs the burden of setting up and managing their own plan.

Can the manager of a small or medium-sized enterprise (SME) benefit from this?

Yes, in companies with fewer than 250 employees, the manager can benefit from the PERCOI (Intercompany Retirement Savings Plan) and its employer matching contributions just like their employees. This makes it a tax-efficient way to build personal retirement savings: the employer matching contribution is tax-deductible and exempt from income tax for the manager, without the complexity of a customized, category-based plan.

How to fund a PERCOI?

The PERCOI (Intercompany Savings Plan) is funded by profit-sharing, employee share ownership, unused vacation days, employer matching contributions, and voluntary contributions. Directing profit-sharing and employee share ownership to the plan, rather than receiving them directly, allows you to avoid income tax on these amounts while still benefiting from employer matching contributions—a strategy that needs to be reconsidered annually.

Is the payout in the form of a lump sum or an annuity?

As with all group retirement savings plans (PER) established under the PACTE law, you can choose between a lump sum, an annuity, or a combination of both. The portion derived from employee savings and employer matching contributions is exempt from income tax (gains are subject to social security contributions). The best option depends on each individual's financial situation—a point to discuss with an advisor before retirement.

What is the difference between Balmont Conseil and a bank advisor?

Balmont Conseil is a consulting firm, a member of ANACOFI, with no capital ties to any bank or account holder. We design group retirement plans and executive compensation strategies together, selecting solutions from across the market. While a bank distributor promotes its own plan, we optimize the integration between the SME, its teams, and the executive's personal assets, with complete transparency.