Individual Pension Plans
Plans d’épargne retraite individuels, PER individuels
Coverage
Voluntary participation
- Individuals can subscribe privately to a savings account; no restrictions regarding age or employment status.
Financing
General finances
- Fully funded personal pension plans based on personal contribution payments and capital revenues.
Contribution payments
- Persons provide contribution payments and decide upon the specific amount individually.
State support
- Payments within a certain limit (EUR 32,909 in 2020) are not subject to income tax.
- The revenue generated by the savings is exempted from income taxes in certain conditions.
Administration
- The plans are administrated by private insurance companies.
Qualifying Conditions
- The insured person has the right to claim benefits only in case of retirement; conditions are the same as in the general scheme for employees in industry and commerce and other basic pension schemes.
- Under certain conditions, the savings must be paid to the entitled beneficiaries before retirement (e.g., in case of death of the person, the sum must be paid back as part of the inheritance).
Benefits
Pension payments
- The benefit is determined by the conditions of the insurance contract which is generally divided into two types: contract with predetermined benefits; contract with predetermined insurance fees.
- Lump-sum payment and annuity payment are both possible.
Taxation and social security contributions
- Payments are not always subject to income tax (especially when the benefit is paid as a lump sum).
- Payments are subject to CSG, CRDS and CASA.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- Individuals can subscribe privately to a savings account; no restrictions regarding age or employment status.
General finances
- Fully funded personal pension plans based on personal contribution payments and capital revenues.
Contribution payments
- Persons provide contribution payments and decide upon the specific amount individually.
State support
- Payments within a certain limit (EUR 32,909 in 2020) are not subject to income tax.
- The revenue generated by the savings is exempted from income taxes in certain conditions.
- The plans are administrated by private insurance companies.
- The insured person has the right to claim benefits only in case of retirement; conditions are the same as in the general scheme for employees in industry and commerce and other basic pension schemes.
- Under certain conditions, the savings must be paid to the entitled beneficiaries before retirement (e.g., in case of death of the person, the sum must be paid back as part of the inheritance).
Pension payments
- The benefit is determined by the conditions of the insurance contract which is generally divided into two types: contract with predetermined benefits; contract with predetermined insurance fees.
- Lump-sum payment and annuity payment are both possible.
Taxation and social security contributions
- Payments are not always subject to income tax (especially when the benefit is paid as a lump sum).
- Payments are subject to CSG, CRDS and CASA.
Legal Basis: Monetary and Financial Code, Book II, Title II, Chapter IV (Code monétaire et financier, Livre II, Titre II, Chapitre IV).