Intimate partner violence:
a new case for early withdrawal of employee savings
September 17, 2020
As of June 2020, an employee who is a victim of intimate partner violence can withdraw funds invested in a company savings plan.
Depending on the type of plan chosen by their employer, employees in France can invest their profit-sharing and performance bonuses as well as make additional contributions (often matched the employer) into a company, multi-company or corporate group savings plan. After five years, funds can be withdrawn from the savings account without paying any income tax on the contributions or earned revenue. However, the earned revenue is subject to French social security contributions (CSG, CRDS and the solidarity tax) amounting to 17.2%.
Up to recently, there were nine cases in which an employee was permitted to make an income tax-free withdrawal from these savings before the five-year period had expired.
As of June 2020, a tenth case – intimate partner violence – was added to the list.
Here is the updated list of cases where early withdrawal is authorized :
- Entry into marriage or a civil partnership (i.e. Pacs)
- Birth or adoption of a child, starting with the third child
- Divorce, legal separation, or end of a civil partnership (Pacs), when given the custody of at least one child
- Acquisition of a primary residence, home extension work, or restoration of a home following a natural disaster
- Establishment or take-over of a business by the employee, the employee’s spouse or civil partner (Pacs), or a child of the employee
- Overindebtedness of the employee
- Incapacity of the employee, the employee’s spouse or civil partner (Pacs), or a child of the employee
- Termination of the employment contract (dismissal or resignation)
- Death of the employee or the employee’s spouse or civil partner (Pacs)
- Intimate partner violence
What conditions need to be met ?
Funds may be withdrawn when the victim has obtained a protective order from a family court prohibiting their spouse, civil partner, or live-in partner, or their ex-spouse, civil partner, or live-in partner, to approach or contact the victim or their family members.
Early withdrawal is also authorized if acts of violence are being investigated by the public prosecutor, if the case has been referred to a criminal court by the public prosecutor or investigating judge, or if the case has led to prosecution, a conviction (even if not final), an alternative measure to prosecution, or a criminal fine.
When can the request be made ?
A request for early withdrawal due to intimate partner violence can be made at any time.
Did you like this article? You are visiting the AXA Santé & Collectives website.
Browse our site to learn more about our services.