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  5. Thursday 28th November | The Employer & the expected Pension Reforms

Thursday 28th November | The Employer & the expected Pension Reforms

Publié le : 21/11/2019 21 novembre nov. 11 2019
News

Last summer, the Haut Commissaire aux Retraites (High Commissioner for Retirement Issues) Jean-Paul Delevoye announced a set of recommendations for a universal pension scheme, in respect of which consultation is now ongoing. At the time of writing, the plan is to gather into a universal scheme, the basic State pension as well as the complementary schemes. Flat dues corresponding to 25.31% of wages would yield points; no-one would be required to pay dues in excess of 30,770 €/year, since the cap on which dues would be calculated would be 121,572 €/year.

What can the employer do in favour of an employee whose annual wage exceeds that cap, and whose replacement rate will likely be lower? As it happens, there are solutions.
 
  • Defined benefit pension schemes (Ord. du 3 juillet 2019)

- Assuming the earlier “article 39” schemes cease to operate: Should they be closed down, or outright eliminated? And if so, how?

- New “article 39” schemes: What are the specifics? Are they worthwhile? If so, for whom? What about company-officers.
 
  • Defined-dues pension schemes (Ord. du 24 juillet 2019)

- Earlier “article 83” schemes and PERCOs: Should they be retained? Or will they too cease to operate?
- New pension-savings plans (Plans d’épargne retraite or PERs): what are the specifics of mandatory PERs and of collective, company-wide PERs? Are they worthwhile, compared to the earlier arrangements? When should they be set up, and how?
- “article 82” arrangements: is this optional scheme worthwhile? And if so, for whom?

With our Partners Juliana Kovac and Philippe Montanier And Philippe Langlois Avocat à la Cour, Emeritus Professor at the University of Paris X Nanterre

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