Since 1 October 2020, it is no longer possible to open new PERP, Madelin, PERCO, or article 83 contracts. These "old generation" retirement savings products continue to exist for current holders, but they are gradually being replaced by the PER created under the PACTE law. Transferring to a PER is not mandatory -- your old contracts remain perfectly valid -- but it offers substantial advantages that deserve careful examination. The key is to properly weigh what you gain and what you lose before taking the step, as the transfer is an irreversible operation.
Why Transfer Your Old Contracts to a PER?
Freedom of Lump Sum Withdrawal: The Decisive Argument
The PER offers unprecedented withdrawal flexibility in the history of French retirement savings. You can recover your savings 100% as capital, 100% as an annuity, or as a combination of both (mixed withdrawal). The PERP limited capital withdrawal to 20% of the total amount (except for small annuities), and the Madelin contract required a full life annuity payout. For a saver who wants access to their capital at retirement -- to repay a mortgage, help their children, invest in real estate, or simply retain control of their wealth -- this freedom is a game-changer.
Early Unlocking for Primary Residence Purchase
The PER also allows early unlocking for the purchase of a primary residence, which was impossible with the old products. For a worker still far from retirement who is considering a property project, this possibility represents a considerable wealth-building advantage.
Often More Competitive Fees
New-generation PER contracts, particularly online contracts, charge significantly lower management fees than old PERP and Madelin contracts. An online PER such as Linxea Spirit PER or PER Placement-direct charges management fees of 0.5 to 0.6% per year, compared to 0.8 to 1.2% for most PERP and Madelin contracts sold through traditional banking and insurance networks. On a balance of 100,000 euros over a 15-year horizon, a 0.5% fee difference represents a cumulative gain of over 20,000 euros (with compound interest).
A Broader Range of Investment Options
Modern PER contracts offer a much more diversified investment universe than old contracts: ETFs (low-cost index trackers), SCPI (real estate investment trusts), thematic funds (ESG, technology, healthcare), target-date management, high-performing euro funds. Old PERP and Madelin contracts are often limited to a handful of in-house funds with mediocre performance.
Contracts That Can Be Transferred to a PER
The PERP (Plan d'Epargne Retraite Populaire)
The PERP is the direct predecessor of the individual PER. The transfer is straightforward with no particular restrictions. Transferred amounts are allocated to compartment 1 (voluntary contributions) of the PER. The tax history of contributions -- deducted or non-deducted -- is preserved and transmitted to the new manager, which is essential for determining the applicable tax treatment at withdrawal.
The Madelin Contract
Designed for self-employed workers (TNS -- travailleurs non salaries), the Madelin contract can be fully transferred to an individual PER. The amounts join compartment 1. The main advantage is the ability to benefit from 100% capital withdrawal, which is impossible with the Madelin (except for annuities below 480 euros/quarter). For a self-employed worker who has accumulated significant capital in a Madelin, this opening is decisive.
The Article 83
The article 83 contract is a collective defined-contribution retirement scheme taken out by the employer. Transfer to a PER is only possible when the employee has left the company. The amounts join compartment 3 (mandatory contributions), meaning they remain subject to mandatory annuity payout. The transfer therefore does not provide capital withdrawal freedom for this compartment, but it does allow consolidation of assets and access to better investment options.
The PERCO
The PERCO can be transferred to a PERECO or to an individual PER. The amounts join compartment 2 (employee savings). The benefit is consolidating assets in a single plan and accessing a better investment universe.
PREFON, COREM, and CRH
Supplementary schemes for civil servants (PREFON, COREM) and the Complement de Retraite Hospitalier (CRH) can also be transferred to a PER. Conditions vary by managing organization. These transfers deserve case-by-case analysis, as these schemes sometimes offer specific guarantees (favorable mortality tables, point-based guarantees) that will be lost upon transfer.
| Old contract | Destination PER compartment | Capital withdrawal possible | Transfer fees |
|---|---|---|---|
| PERP | C1 (voluntary contributions) | Yes, 100% | 0% if > 10 years, 1% max otherwise |
| Madelin | C1 (voluntary contributions) | Yes, 100% | 0% if > 10 years, 1% max otherwise |
| Article 83 | C3 (mandatory contributions) | No (annuity required) | 0% if > 10 years, 1% max otherwise |
| PERCO | C2 (employee savings) | Yes, 100% | Free |
| PREFON / COREM | C1 (voluntary contributions) | Yes, 100% | Varies by organization |
The Transfer Procedure Step by Step
Step 1: Choose Your New Destination PER
Before initiating the transfer, select the destination PER by comparing the key criteria:
- Management fees: aim for 0.5 to 0.6% for an online PER (Linxea Spirit PER, PER Placement-direct, PER Nalo)
- Range of investment options: euro funds, diversified unit-linked funds, ETFs, SCPI
- Management options: free management, piloted management, target-date management
- Contribution fees: 0% with the best online contracts (compared to 1 to 4% with traditional networks)
- Quality of service: online interface, mobile app, responsive customer service
Step 2: Initiate the Request with the New Manager
The transfer request is made to the new PER manager, not the old one. You sign a transfer form authorizing the new manager to recover your assets. The new manager handles all formalities with the old provider -- you do not need to take any action with your former insurer.
Step 3: Wait for the Transfer Period
The former manager has a legal deadline to complete the transfer. In practice, allow 1 to 3 months. The fastest transfers involve simple PERP contracts held with major insurers. The longest transfers often involve Madelin and article 83 contracts, whose legacy managers are not always the most responsive.
The legal transfer deadline
Under the PACTE law, the former manager must communicate the necessary information (balance, contribution history, deducted/non-deducted breakdown) to the new manager within 1 month of receiving the request. The actual transfer of funds must occur within a maximum of 2 additional months. In case of delay, late payment penalties apply in favor of the policyholder.
Step 4: Verify Correct Allocation
Once the transfer is complete, carefully verify that the amounts have been correctly allocated to the right PER compartments and that the contribution history (deducted/non-deducted) has been faithfully transmitted. This verification is crucial: an allocation error can lead to inappropriate tax treatment at withdrawal. In case of any discrepancy, contact your new manager immediately for correction.
Transfer Fees: What the Law Says
The PACTE law has strictly regulated the transfer fees from old contracts to the PER:
- PERP and Madelin over 10 years old: transfer fees capped at 0% (free transfer)
- PERP and Madelin under 10 years old: fees capped at 1% of the transferred balance
- PERCO: transfer is free regardless of age
- Article 83: fees capped at 1% if under 10 years, free beyond that
Beware of Hidden Fees
Beyond formal transfer fees, watch out for indirect fees that some former managers may apply: early surrender penalties on euro funds (redemption indemnities), unit-linked liquidation fees, or miscellaneous administrative charges. These fees are not covered by the PACTE law cap. Read the general terms of your old contract carefully and request a precise cost estimate before finalizing the transfer.
Worked example: Philippe, 57, general practitioner
Philippe, 57, a general practitioner in private practice for 25 years, holds a Madelin contract taken out in 2005 (20 years old) with a balance of 210,000 euros. This contract has management fees of 0.95% and a euro fund yielding 2.1% net. The unit-linked options are limited to 8 funds managed by the insurance company.
Philippe is considering a transfer to a Swisslife PER with management fees of 0.6% and a euro fund at 3.1% net.
Potential gain calculation:
- Annual fee saving: (0.95% - 0.60%) x 210,000 = 735 euros/year
- Euro fund yield gain: (3.1% - 2.1%) x 100,000 (euro portion) = 1,000 euros/year
- Estimated total gain: 1,735 euros/year
- Transfer fees: 0 euros (Madelin over 10 years old)
- Over 7 years (until age 64): cumulative gain of approximately 13,500 euros, not counting compound interest and the potential gain from better unit-linked allocation
Additional benefit: Philippe can now choose capital withdrawal (impossible with the Madelin), stagger over several years, and opt for a mixed withdrawal. This flexibility is invaluable.
When Should You Transfer? When Should You Keep?
Situations Favorable to Transfer
The transfer is clearly advantageous in the following cases:
- Contract over 10 years old: free transfer, no fees
- High management fees (above 0.8%): the fee difference with an online PER compounds significantly over time
- Limited investment range: old contracts often offer underperforming in-house funds
- Desire for capital withdrawal: impossible with the Madelin and limited to 20% with the PERP
- Property purchase plans: early unlocking for primary residence only exists with the PER
- Retirement still far off (more than 5 years): fee and yield gains have time to accumulate
Situations Where Keeping Is Preferable
Transfer may be unfavorable in certain specific cases:
- Irreplaceable specific guarantees: some PERP or Madelin contracts offer guaranteed technical rates (minimum guaranteed annuity rates) or older, more favorable mortality tables. These guarantees, taken out when interest rates were higher, are irrecoverable once the transfer is made.
- High-performing euro funds: a few old contracts offer euro funds with above-average yields and guaranteed rates. If your euro fund yields 3.5% net, transferring to a PER with a 2.5% euro fund makes no sense.
- Death benefit floor guarantee (garantie plancher): some Madelin contracts include a floor guarantee (the death benefit is at least equal to total contributions made, even if markets have fallen). This guarantee disappears upon transfer.
- Near retirement (less than 2 years): the fee savings do not have time to offset the administrative hassle of the transfer.
| Situation | Transfer recommended | Keeping recommended |
|---|---|---|
| Age > 10 years, high fees | Yes -- immediate gain | No |
| High guaranteed technical rate | No | Yes -- irreplaceable advantage |
| Desire for capital withdrawal | Yes -- impossible otherwise | Not applicable |
| Retirement in less than 2 years | No -- insufficient gain | Yes -- not enough time to recoup |
| High-performing euro fund (>3.5%) | No | Yes -- yield to preserve |
| Limited investment range | Yes -- diversification needed | No |
Essential Points of Vigilance
Tax History of Contributions
Ensure that the former manager correctly transmits the history of deducted and non-deducted contributions. Without this information, the new manager could apply the default tax regime (deducted contributions), which would be unfavorable if some of your contributions were not deducted. Request a detailed statement from your former manager and keep it carefully.
Mortality Tables
If your old contract guarantees you old mortality tables (TGH/TGF 2005 or earlier, more favorable for annuity calculation as they are based on shorter life expectancy), the transfer will cause you to lose this advantage. This point is crucial if you are considering an annuity payout: an old mortality table can generate an annuity 10 to 20% higher than current tables.
The Disinvestment Period
During the transfer phase, your savings are generally disinvested (sold on the old contract) and then reinvested (purchased on the new contract). This "transit" period lasts from a few days to a few weeks. During this time, your savings are not exposed to financial markets. In a strong uptrend, this can represent an opportunity cost. In a downturn, it may paradoxically protect you.
Treatment of Insurance Guarantees
Some Madelin contracts include insurance guarantees (disability, death) linked to the contract. The transfer causes these guarantees to disappear. If you benefit from them, make sure you have taken out a separate insurance contract before making the transfer, to avoid any gap in coverage.
Watch out: the floor guarantee (garantie plancher)
Many Madelin contracts offer a floor guarantee in case of death: if the holder dies, the beneficiaries receive at least the total amount of contributions made, even if the contract's value has fallen due to market conditions. This guarantee, often included at no additional cost in old contracts, is not transferred to the PER. Assess the value of this guarantee before transferring, especially if your contract is heavily invested in volatile unit-linked funds.
Partial Transfer: A Little-Known Option
Some managers allow partial transfer of an old contract to a PER. For example, you could transfer 70% of your PERP to a PER (to benefit from capital withdrawal on that portion) while keeping 30% in the PERP (to take advantage of the guaranteed technical rate for the annuity). This option is not available with all managers and conditions vary. Check with your current manager.
Conclusion
Transferring old retirement savings contracts to a PER is generally a beneficial operation, particularly for contracts over 10 years old (free transfer) that offer mediocre fee and management conditions. The freedom of capital withdrawal, early unlocking for primary residence purchase, reduced fees, and modern investment options of online PER contracts are strong arguments. However, every situation is unique: systematically check the specific guarantees of your old contract (technical rate, mortality tables, floor guarantee) before making your decision. A poorly calibrated transfer can cause you to lose irreplaceable advantages. If in doubt, consult a wealth management advisor who can precisely quantify the gain or loss associated with the transfer.
The information contained in this article is provided for informational purposes only and does not constitute investment advice. Fees and conditions of the contracts mentioned may change. Consult the contractual documents of both your old and new contracts for a precise analysis.