A survey of the Pacte law reveals that almost 70% of companies have a retirement savings plan. The rest, 30% of them, wish to offer a device to their employees.
The company has become the central player in the creation of employee pensions. This is one of the lessons to be learned from the Flash Law Pact survey, conducted by Willis Towers Watson-Gras Savoye. For this study, 130 companies and industries of all sizes responded, which highlights the major retirement trends in 2020.
The rate of equipment of companies in supplementary retirement is increasing: almost 70% of them have a retirement savings plan and 30% who are not equipped wish to offer a device to their employees. Still according to this study, 73% believe that preparing for retirement is a real lever for attracting and retaining talent, but only 15% of companies communicate on this subject.
A still insufficient rate of additional retirement equipment
The rate of additional retirement equipment remains insufficient in view of the challenges and expectations of employees. It remains strongly correlated with the size of the company, that is to say it is more important in the “large” companies, which have more resources. However, smaller companies – less than 250 employees – have had a more significant interest in pension plans since the Pacte law.
More companies still opt for Article 83
The new PER (Retirement Savings Plan) provides for the convergence, within the same product, of contributions from the old PERE schemes – Article 83 and PERCO (Collective Retirement Savings Plan). It allows companies with more than 250 employees to benefit from a reduction in the social package from 20% to 16%. It is eliminated on profit sharing for companies with less than 250 employees, and for those with less than 50 employees, the social package is canceled on profit sharing but also on participation and contributions.
According to this study, there are more companies that have opted for Article 83 and less for PERCO, but the provisions of the Covenant Law should reverse the trend. Remember that the “Article 83” retirement contract makes it possible to set up a supplemental funded pension for employees. PERCO – Collective Retirement Savings Plan – is a salary savings tool complementary to the company savings plan.
Better inform its employees about the Pacte law
Employees of companies now see retirement savings as an integral part of their overall compensation. They make these devices an important element of attractiveness, differentiation and retention for an employer, reports the Flash Law Pact survey.
In addition, companies must set up financial and technical support to respond to requests concerning group supplementary pension plans. They are also obliged to offer modern management and promotion tools so that employees can better understand the systems.
For Valery Bassong, Director of Pension Brokerage and Employee Savings at Willis Towers Watson- Gras Savoye, “ an overhaul of the pension and employee savings system adapted to the specifics of each company is strategic, both financially and for social relations ”