PERECO: Reminder about features of SEI SEF’s PERECO
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With this system, you can top up your long-term retirement savings.
Savings are unavailable until retirement, except in cases of exceptional withdrawal for purchase of the principal residence, death of spouse, invalidity, over-indebtedness, end of unemployment benefits, etc.
Schneider proposes a matching contribution of up to €800. This benefits the first €200 instalment with varied matching contribution rates of 150% to 33% (see table below).
You can top up the PERECO by transferring days from your CET, by making voluntary monthly installments, with a single year-end payment, or a combination of the three.
There are two options for plan management: self-directed with funds freely chosen by the employee, or managed plans in which case BNP Paribas places your funds according to your age.
In this case your assets are secured annually by a selection of lower-risk funds as you approach retirement age.
It is then possible to withdraw the capital net of tax or take a taxable annuity. A combination is possible.
Current social security levies: 17.2% on capital gains or 10.1% on annuities.
2 - 17 May 2022: Deposit up to 5 days of annual leave in your time-savings account (CET).
In early May each year, it is possible to transfer all or part of the balance of your paid annual leave from the previous year to your time-savings account (CET) using the PayLink tool.
Just click on « CET ». Conditions: up to 5 days for full-time employees with at least 3 months’ seniority.
For part-time employees, the number of days is limited to the number of days worked per week (example: 4 days for an employee at 80%).
2 May to 2 June 2022: Transfer days deposited in the time-savings account (CET) to the PERECO.
If you have transferred annual leave to your time-savings account (CET), you may want to transfer them to your PERECO.
You can transfer up to 10 days. Just log in to PayLink and click on CET.
The net value of one day of paid annual leave is equal to 1/22 of your net monthly salary.
2 May to 2 June 2022: Make monthly payments to your PERECO.
Until June 2, you can also schedule monthly payments that will be debited from your pay from July to November: 5 instalments. Log in to PayLink and click on PEG & PERECO Voluntary Payments. (Versements Volontaires) then by going to the "PERECO monthly payment" tab
It is possible to receive the matching contribution without transferring any days from your time-savings account(CET).
You must program a monthly voluntary payment of €261.80 (€1,309/5).
It is also possible to make a single payment at the end of the year on the BNP site. This payment can be made by credit card, transfer or cheque.
Choose your PERECO investments depending on your objectives and your planned retirement date.
Unless otherwise specified, your money is managed by the fund.
You can change the type of management at any time and either way on the Personeo, Epargne Retraite Entreprises BNP Paribas website.
You can also choose to switch some or all of your assets to other funds at any time. After choosing to switch, funds are then placed in the self-directed PERECO section.
The PERCO fund is the same as the employee savings plan (PEG) except that the Schneider Actionnariat fund (shares) is not eligible for PERECO. It is, however, eligible for a complementary fund: Schneider Obligatoire, investments in bonds.
Reminder: Equity markets, which have risen significantly since March 2020, have been falling since the beginning
of the year due to geopolitical risks. Investing in shares, which is often interesting in the long term, is therefore
more speculative than ever in the short term.
As you approach retirement age or acquisition of your primary residence, it may be wise to secure your assets by allocating them to less volatile funds.
The table below shows PERECO fund performance and risk levels for 5 years
For more information about investing, see the CFTC memo dated 20 April 2022 about investing bonuses.