As in other countries around the world, where reductions to the pension system have become all too common, a growing concern of French employees is how to achieve financial security in their years of retirement. PERCO (Plan d’épargne pour la retraite collectif, or Group Retirement Savings Plan) schemes have the purpose to encourage workers to use voluntary, funded plans to supplement the traditional pay-as-you-go retirement pillars. Similar to a 401(k) plan, its dual nature of voluntary savings scheme and occupational retirement plan offers a flexible approach that allows employers to respond to variable business conditions as well as offer a third-pillar retirement option to the workforce. This article provides an overview of the general features of PERCO schemes.
