Plan of saving of company

In France, the plane of saving of company ( PEE ) is a device of saving set up by a Entreprise via an agreement with managements and labor or by a unilateral decision. Very undertaken employing at least an employee, even part-time, can found a PEE.

The Salarié S, and the head of undertaking (subject employing less than 100 paid) can carry out voluntary payments that their company can supplement via a Abondement. This one is to the maximum of 300% and is reached a maximum to 8% of the annual ceiling of the social security (since the Law of December 30th, 2006), either 2 574.72 euros for 2007 (possible increase of 80%, or increased to 4634,50 euros for an investment in titles of the company). The participation can be invested in the PEE. It is also the case for the profit-sharing. In this case, the profit-sharing is exonerated from Income tax (in all the cases the profit-sharing is exonerated from social contributions).

The versed sums (including the additional amount) are generally invested in Investment funds of Company (FCPE) even if the regulation also makes it possible to invest in accounts titles and SICAV.

The supports of investments are very varied and the employee chooses the FCPE on which it wishes to invest his saving: monetarist, bond-holder, actions, actions of its company, funds guaranteed, diversified funds… Diversity also relates to the geographical universe of investment: France, euro area, Europe, America, Asia…

a council: look at the note of the funds or its card of presentation before investing, but attention not to imagine that the performance of the last year will reproduce because statistically it is seldom the case (except for the monetarist). On the other hand, in the long run, the actions report more than the obligations which report more than the monetarist.

Ideally, it is better to invest every month to avoid the stock exchange fluctuations because if one makes only one payment in the year, that can fall to a good or a bad time, and one knows it afterwards only several months.

In fact the choice of investment can be as broad as in its banker or his insurer but as it is about a negotiation between a company and a banker, the expenses are definitely weaker. Already, the company with obligation to deal with the operation costs of the Plan of Saving Undertaken. This is all the more true as the company is important and that the DRH did its work to set up a gravitational PEE (expenses but especially a broad choice of FCPE and a quality of service for the employees).
One of the aspects interesting is the shareholding developed via the PEE because if your company makes a capital growth, you will be able to profit in addition to the additional amount of a rebate (even on the actions not - dimensioned since the Law " Breton") who can be 20 or 30% (in this last case the actions will be blocked 10 years). This rebate is completely exonerated (even of the social samples!). But attention, your saving will be invested on only one title, even if the rebate and the additional amount are a serious avoid-shock in the event of fall.

Example: an employee invests 80 for an action which is worth 100. Its company abounds of 50% its payment (Net of CSG-CRDS), that is to say a payment complementary to 40. Its investment is worth thus 140, that is to say 75% of instantaneous performance! To lose on its personal capital contribution, the action will have to thus drop of more than 43%. Admittedly, it is always possible and there exist some cases, but in general over 5 years the actions have a positive performance.

For richest subjected to the Wealth tax, it is possible to be subjected only to 25% of the amount held in actions of its company, subject to committing itself preserving them during 6 years (Finance law 2006).

The money is blocked 5 years, but the legislator envisaged many cases of anticipated releasings: acquisition or enlarging of the main home, marriage, birth or adoption of the 3rd child and the following, departure with the retirement, resignation, dismissal, death, disability, creation of company, over-indebtedness.

Taking into account the additional amount, it is the device of saving most interesting for an employee. Indeed if the employee invests 100 and that its company pours 50 to him, that gives an immediate performance of 50%. The constraint of blocking is low because of the reasons for anticipated releasing.

It is besides possible for the employee to preserve his saving beyond the 5 years. In this case, it is available constantly and continuous to profit from the gravitational taxation.

Indeed, the tax and social framework is particularly interesting:

the participation, the profit-sharing and the additional amount invested in the PEE are exonerated from social contribution and of income tax,
Seul the profit-sharing and the voluntary payments carried out by the employees can be abounded by the company. The Participation cannot be abounded when it is versed with the PEE
the voluntary payments carried out by the employees do not give right to an tax exemption or social but the appreciations are exonerated from tax at the exit (what is much more interesting in the long run where the capitalization effect plays full)
the participation, the profit-sharing and the additional amount are subjected to social samples (CSG and CRDS) at the rate of 8% out of 97% of the amount (a bizarrery of a senior official which wanted to make simple)
the social samples apply to the exit. There, that becomes complicated for calculation (idem that the remark above): the CRDS taken on the appreciations carried out starting from February 1st, 1996 is of 0,5%; the CSG taken on the appreciations carried out starting from January 1st, 1997 until December 31st, 1997 is of 3,4%, starting from January 1st, 1998 until December 31st, 2004 is of 7,5%, starting from January 1st, 2005 is of 8,2%; taking away CNAV and CIF applicable to the appreciations carried out starting from January 1st, 1998 is of 2%; the additional fee with the social samples applicable to the appreciations carried out starting from July 1st, 2004 is of 0,3%. This tax applies only to liquidations of the assets intervening starting from January 1st, 2005.

In light, it should be retained that the appreciations are subjected to an highest rate of 11%.

In conclusion, it is generally about a device of saving interesting for the employee and the company which saves the social contributions. Check if your company set up some and take note of its methods.

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