The Collective Retirement Savings Plan - PERCO

The Collective Retirement Savings Plan - PERCO

PERCO funding sources

• voluntary contributions,
• incentives paid by your employer: profit-sharing, optional profit-sharing, and employer contributions under the agreements in force within your company,
• Time (days banked in a CET account or if there is none RTT hours time off in lieu), paid leaves beyond the 4th week.

Taxation of the PERCO on entry

• Individuals subject to CSG and CRDS are those who are both considered tax resident in France and covered by a mandatory French health insurance scheme
• PASS: Annual Social Security ceiling, i.e. €48,060 for 2026 / IR: income tax

Source: HSBC Asset Management. January 2026. For illustrative purposes only.

Your employer covers your account maintenance fees. Your voluntary contributions are limited to 25% of your annual gross income (across all employee savings plans combined).

Investing my retirement savings

The amounts are paid into units of employee shareholding funds (FCPEs) which have different management profiles. For your investments, you have access to:

• A so-called “delegated management” system whereby you delegate the investment of your savings according to an investment horizon (e.g. retirement)
• A so-called “self-directed management” whereby you choose your investment vehicles on your own.

In any case, your choice can be modified at any time.

Withdrawing from a PERCO

The savings are locked until retirement, but the following 5 reasons will allow you to collect it early.

Upon maturity, you can choose to collect all or some of your savings as lump sum or an annuity, but you can also keep all or some of your savings in the plan, or withdraw your assets as an annuity.

All or part of the capital built up in your PERCO can be transferred to an insurance company in exchange for an annuity.

This means the capital accrued in your PERCO is swapped for an individual insurance policy that guarantees you this income. HSBC Epargne Entreprise will transfer your capital to whichever insurer you choose.

Taxes upon withdrawal from a PERCO

On withdrawal from the PERCO, only the capital gains generated on the amounts invested are taxable. These gains are subject to the applicable social security contributions (18.6%).
If you choose to take the benefit as an annuity, it will be taxed under the favourable regime applicable to annuities purchased for value (annuities acquired for consideration).

Only the capital gains generated across all assets held in the plans are taxable.

Capital gains are calculated using a Weighted Average Acquisition Price (PMPA), which is the weighted average of the different purchase prices of the securities. The difference between the sale price and the PMPA determines the unit gain or loss realised. The capital gain is calculated in tranches, taking into account the historical social contribution rates, which have increased over time. The portion of gains accrued or recorded on contributions made in different periods is subject to the corresponding rates. This calculation method applies to income on amounts paid in before 1 January 2018. It remains applicable where the PERCO is transferred or converted into a PERCOL before 1 January 2023.

Social security contributions are deducted when your savings are paid out and are remitted directly to the tax authorities.

Save for retirement with my PEE as well

• PS: social security contributions
• RVTO: Annuity taxed under the progressive income tax scale on a portion of its amount, determined based on the annuitant’s age when the annuity payments begin.

Source: HSBC Asset Management. January 2026. For illustrative purposes only