Eligibility conditions for early withdrawal of funds from a PEE account

Published on: November 15, 2024 | By: @rprasanth_kumar

The Employee Savings Plan (PEE: Plan d’épargne entreprise) is a collective savings system allowing employees to invest with company contributions and enjoy certain tax benefits.

Contributions made to a PEE acount are typically locked in for a minimum of five years. However, certain life events allow employees to request an early release of funds. Here’s an overview of the qualifying circumstances and the necessary documents for an early withdrawal from a PEE.

Topics Covered 📚

Qualifying Life Events for Early Withdrawal
Timing of Withdrawal Requests
Process for Requesting Early Withdrawal
Sources & References

Qualifying Life Events for Early Withdrawal

Employees may request for an earlier access to their PEE savings, if they experience one of the 14 following events:

Marriage or Civil Union (PACS)
Birth or Adoption of a 3rd Child
Divorce, Separation, or cancellation of PACS, with custody of at least one child.
Domestic Violence Victim
Disability (Employee, Spouse/PACS Partner, or Child)
Death (Employee, Spouse, or PACS Partner)
Employment Termination, End of Individual Business Activity, End of Social Mandate, or Loss of Status as Collaborating/Associated Spouse.
Creation or Purchase of a Business by the Employee or Their Spouse/PACS Partner.
Purchase or Expansion of Primary Residence, including construction or major renovations, with approved permits. SCIs are not accepted.
Repairs to Primary Residence following a natural disaster.
Energy-Efficiency Renovation of Primary Residence.
Debt Relief: Assists in cases of over-indebtedness.
Caregiver Responsibilities for the Employee or Their Spouse/PACS Partner.
Purchase of a Low-Emission Vehicle

Timing of Withdrawal Requests

Employees generally must request early access to funds within six months of the qualifying event. However, an immediate request can be submitted in the following cases:

employment termination
death
disability
domestic violence
debt relief
caregiver responsibilities

Process for Requesting Early Withdrawal

Employees should submit their request to the organization managing the PEE on behalf of their employer. This request must include documentation validating the qualifying event.

To support an early withdrawal request, employees should provide specific documents, including (but not limited to):

Marriage: Marriage certificate (extrait de l’acte de mariage) or family record book (livret de famille).
PACS (Civil Union): Official certificate or birth certificate showing PACS status.
Birth or Adoption of a Third Child: Family record book (livret de famille) or birth certificate (extrait d’acte de naissance) or adoption certificate, or CAF attestation confirming three dependent children.
Divorce or Separation with Child Custody: Divorce ruling or court decision specifying child custody arrangements.
Domestic Violence: Court protection order or documentation confirming the judicial process.
Disability: Social security or pension body’s disability certification (attestation d’invalidité) and carte d’invalidité.
Death: Death certificate (acte de décès ou acte de notoriété) and + certificat d’hérédité.
Employment Termination: Work certificate (certificat de travail) or employer confirmation (attestation de l’employeur) of termination date.
Debt Relief: Request from the over-indebtedness commission or a court order specifying release amount.
Business Creation/Purchase: Business registration or company bylaws.
Primary Residence Purchase: Sales contract or notary deed.
Natural Disaster Repair: Prefectural decree reference and insurance claim documentation.

Support This Blog!

If you’ve found my articles helpful, interesting or saving your time and you want to say thanks, a cup of coffee is very much appreciated!. It helps in running this website free for the readers.

Sources & References 📕

DISCLAIMER

Any finance-related information shared is not professional legal, tax, or investment advice. The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code. Investment carries risks of loss and past performance does not guarantee future performance. Please consult a financial advisor for any professional advice.