This time it’s public: insurers and intermediaries must really make an effort to be transparent about the pricing they use for their pension savings plans and life insurance contracts. The ruling describing the table, which is updated every year by insurers, was published in the Government Gazette.
Origin Retirement Savings Plan (PER) is presented as one of the mainstays of the Pacte Act, which is itself one of the pillars of the five-year term, explained Bruno Le Maire, Minister of Economic Affairs and Finance, last September. And Bercy the tenant did not hide his satisfaction when he saw the number of openings (4 million PER at the time, of which half of Individual PER): beyond our expectations. There was one big drawback: I think marketers charge too much.
Retirement savings plan: the cost to be compared
Bruno Le Maire made this observation based on a study published in the summer of 2021 by the President of the Financial Sector Advisory Committee (CCSF). A study that shows a large difference in costs, from one PER distributor to another, and very high averages (see tables below).
| Minimum | Maximum | |
|---|---|---|
| Fees for payment | 0% | 5% of each payment |
| Membership fees (upon opening) | 0 | 30 |
| The fund’s management fee in euros | 0.60% per annum | 2% per annum |
| Administration fees for UA support | 0.50% per annum | 1% per annum |
| Arbitration fees | 0% | 5% of the referee amount |
| Change in management mode | 0% | 1% |
| Fees of pension arrears | 0% | 3% |
| Shipping fee | 0% | 1% of amounts transferred |
Source: CCSF. Panel of 34 personal insurance PER.
| Type of fee | Average |
|---|---|
| Fees for payment | 3.18% |
| Fund management fees in euros | 0.87% |
| UA Support Management Fees | 0.85% |
| Arbitration fees | 0.72% |
Source: CCSF.
Averages calculated from the group of 34 individual insurances PER.
How to compare PER reduced fees
You will now be able to estimate your total cost
Bercy worked on the material for a long time, to finally get a commitment from PER producers to publish online one tariff. This document, which should be standardized, should allow comparisons before subscribing.
But Bercy is not limited to this standard tablet that is accessible to everyone. In a statement issued in mid-February, the Minister announced: The total fees per account unit or asset will now be shown, starting July 1, 2022 in terms of information for contracts and from 2023 for the annual information campaign for the financial year 2022.
The ruling, which describes how insurers and other PER executives should communicate now – from July 2022 for data submitted at the start of the contract, and from 2023 for annual information to policyholders – was published on March 6 to Official newspaper. Here is the new standard.
| ISIN Code | XXX |
| Libell | XXX |
| management company | XXX |
| Raw performance of property N-1 | A% |
| Property management fees | B% |
| Net profit of the unit of account | A – B |
| Contract management fees | C% |
| Total cost | B + C |
| The final point of the transfer | A – B – C |
| Remuneration rate | X% |
Annex to the ruling of 24 February 2022 on increased transparency regarding the costs of pension savings and life insurance.
Columns A, B, C and B + C or A – B – C describe the calculations that need to be performed. All rightyou can see with this table standard, each year, the total fees and commissions for your distributor (bank, broker, asset management consultant, etc.) for each fund in your contract. This same table will appear in the contractual information PER, which allows you to ensure that fees are deducted before signing.
In fact, a lot of information (recurring costs, cancellations, etc.) already needs to be accurate every year, from 1 April 2020, in accordance with Pacte law. This Decision adds a new mandatory statement in this annual table available at the opening: the total cost, expressed as a percentage.
Retirement : save by paying less tax. 11 contracts compared
The same table for life insurance
The same annual communication, with this detailed table, will apply to life insurance, again from 1 July 2022 to obtain information before the contract is concluded, and therefore in most cases from the annual information distributed at the beginning of 2023 to the policyholder.
For life insurance as for PER, this new transparency must allow in the spirit of Bruno Le Maire to reduce the costs used: I can not be satisfied with the only transparency, Bruno Le Maire explained last September. Its aim is clear: to bet on transparency to force distributors – and unequivocally banks – to reduce costs, as prices that are too high will now be public and easier to compare.
Life insurance: comparison of offers
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