FRANCE – Almost a third of French employers are currently considering the adoption of long-term employee savings plans under new regulation passed in February.

The PPESV plans (Plan Partenarial d’Epargne Salariale Volontaire) – adopted by the French government in the Loi Fabius on February 7 this year, added to existing employee savings plans by extending the duration to ten years and increasing the tax free savings ceiling to F30,000 from F15,000, which some in France have seen as a move by the French government to bring in contributory private pension plans by the back door.

According to the first ‘Annual Barometer’ of the management of French employee savings schemes, a collaboration between human resources consultant Hewitt Associates, employee savings group Interépargne and JP Morgan Fleming Asset Management, half of French companies are at least rethinking their employee savings schemes in the light of the new law – with the figure rising to 57% in groups with over 10,000 employees and 63% in the banking sector.
Twenty nine per cent of these companies say they will principally be shifting to the PPESV vehicle.

The barometer notes that companies are responding to the will of employees, who already tend to leave their savings in the short PEE vehicle beyond its five-year threshold.