In return the product is fiscally advantageous

Exit full weekend of July 14, the new has gone relatively unnoticed. It in not less creates a precedent that risk to respond the insurers, once the summer truce passed. Published on 16 July in the "Official Journal", the Act of 13 July 2006 national commitment to housing allows, in its article 35, a case of output in capital to holders of PERP (people's retirement savings plan), while the product was previously here that output in annuity.

This provision incorporates the amendment tabled by François Scellier, UMP MP, special rapporteur of the budget accommodation in respect of the Finance Committee, and President of the General Council of Val-.

The text stipulates that the PERP "is also designed the constitution of a savings in the acquisition of the principal residence of the participant in accession to the first property (...)" "as from the date of payment of his pension in a compulsory scheme of old-age insurance, or the fixed age pursuant to article l. 351 - 1 of the Code of social security payable to this deadline, by a capital payment. In other words, the PERP will be part of the contribution to a pensioner who wish to acquire a principal residence, if he has never been owner of his home before.

A first breach

The definition is restrictive, but it is nonetheless a first breach. Since the beginning of the marketing of the PERP in the spring of 2004, a number of voices are high for the possibility of a capital output in some cases such as divorce, the death of the spouse and, most importantly, the acquisition of the principal residence ("Les Echos" from January 24). The French Federation of insurance (FFSA) considers, that the product is good and should not change it. In fact, many insurers consider that capital output would be inconsistent with the philosophy of the PERP and, incidentally, are evil review a product that their networks have been slow to take ownership.

Created by the Fillon law on pensions of 2003 and intended to be the first pension funds to the French, the PERP was indeed designed to allow savers to constitute a complement of income for their retirement. It is therefore a principle very, that said "double tunnel": savings is blocked until the retired, the output is mandatory as a life annuity. In return, the product is fiscally advantageous. The PERP contributions are deductible from the income tax in the limit of 10 of the tax net income, annuities because they taxed in their payment.

Remains whether if this change in the PERP make it more attractive. This unique output in capital cases be fiscally not deterrent, the Act provides that investor will be able to pay the tax on the amount collected in equal parts over five years. Overall, holding that it is not a revolution, insurers prefer to wait the release of the tax statement, including before deciding on possible benefits of the measure.

In any case, it should be applied retroactively to the PERP already open, and it would extend the scope by making the output capital available to retirees who would not be owners of their principal residence for two years.