FR - Finalisation of Retirement Savings Reform in France


Adopted on 11 April 2019, the "PACTE" Law (Action Plan for Business Growth and Transformation) was supplemented in July and August 2019 by an Ordinance, a Decree and an Order setting out the practical rules and arrangements applicable to the new Retirement Savings Plan (PER).

Henceforth this is presented in a personal option (to substitute the PERPs and Madelin contracts) and a collectively-subscribed "corporate" option. The new PER is slated for commercialisation on 1 October 2019. Effective from this date, a transition period will run for one year, during which the former products (PERP, Madelin, PERCO, "Article 83", etc.) will remain open for subscription. As from 1 October 2020, these products will be terminated from the market and fully substituted by the PER. As a reminder, the key innovation of the retirement savings reform is the harmonisation of pension product entry and exit requirements, as well as the possibility to pool them within one and the same institution, namely a bank, insurance company or portfolio management company.

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