Implementation and safeguarding of supplementary social protection

Death and disability insurance, healthcare and retirement costs


First finding: supplementary social protection schemes, whether “healthcare costs”, “incapacity, disability or death” provision, or supplementary retirement should be an integral element of a company’s overall remuneration policy insofar as they are:

  • Attractive to employees, particularly in the context of an extensive reform of the pensions system
  • A means of optimising social security and tax arrangements

However, the rules governing these schemes are constantly changing and require companies to modify them on a regular basis. Frequently, the ink is hardly even dry before companies are required pick up the pen to re-write not only the employment law document in with they are contained, but also the insurance policy that guarantees them. 2019 was a case in point with the merger of AGIRC and ARRCO, the so-called “100% health” reform, termination of intra-annual healthcare costs, the creation of the PER (retirement savings scheme), the end of defined benefit pension plans (L. 137-11), etc.

Second finding: given the complexity and continual evolution of the applicable legislation in this area, companies often have difficulty in identifying all of their obligations, which, in the event of non-compliance, may lead not only to the risk of employment-related litigation but also the risk of a URSSAF adjustment. However, in order to decide upon a company-wide practice, it is vital to assess the risks.

Our response: FACTORHY is dedicated to supplementary social protection by supporting companies and groups of companies at each stage of a supplementary social protection scheme: implementation, modification, transformation, removal. Our mission during the implementation stage primarily involves:

  • A review of restrictions under employment law (analysis of sectoral schemes, where applicable) and URSSAF
  • Consideration of the group/company’s needs and practices in this area
  • The drafting or validation of formal legal documents, verifying the proportionality of the corresponding insurance policies, modifying the schemes over the life of the company
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An example of our work: the ‘social restructuring expert’ lawyer

Background: company restructuring operations impacting supplementary social protection schemes

Action: identification of URSSAF and employment-related problems and risks, definition of “closed groups” of scheme beneficiaries, support in the implementation of a standardised scheme

Result: compliance with employment law obligations in relation to the collective status of transferred employees of which the supplementary social protection schemes are a component, whilst continuing to benefit from the social security contribution exemptions for the corresponding employer financing

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