Individual Pension Commitment
Individuele pensioentoezegging, IPT
Coverage
Voluntary participation
- Self-employed managers with a company.
Financing
General finances
- A pension capital (system of capitalisation) based on the investment of deposits by the person concerned and increased by the investment returns.
Contribution payments
- Minimum contribution (EUR 100 per year) and maximum contribution rate of 8.17% of professional income with an absolute maximum of EUR 3,291.30 (in 2021).
- For schemes with a solidarity system (providing additional benefits in case of e.g. temporary incapacity for work, sickness, death): minimum contribution (EUR 100) and maximum contribution rate of 9.40% of professional income with an absolute maximum of EUR 3,786.81 (in 2021).
Incentive strategy
- Contributions are fully tax-deductible as operating expenses within 80% rule (maximum of all statutory and supplementary pensions of last gross income).
Administration
- The person can conclude an ‘ordinary’ or ‘social’ pension agreement with a pension institution of the person’s choice.
- The ‘Financial Services and Market Authority’ (FSMA) monitors pension institutions' compliance with social legislation as well as the financial health and appropriate organisa-tion of pension funds.
Qualifying Conditions
- The payment of the supplementary pension is linked to the statutory retirement pension or is claimable, at the earliest, at the age of 60 years.
- No premature surrender possible except if reserves are to be transferred to a new pension institution or if construction plans are to be realised.
- Agreement has minimum duration of 5 years.
Benefits
Pension payments
- The payments can be made via a one-time lump sum with a one-off capital payment, or life-long annuities with a periodic interest rate.
- Pension payments supplement those of the VAPZ.
Taxation and social security contributions
- Tax advantage through deduction premiums; tax advantage for one-off taxation of capital at a lower rate; two different rates (lowest one when person has worked until pensionable age: 10% versus 16.5%); withholding of health care and solidary contributions, municipal surcharges.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- Self-employed managers with a company.
General finances
- A pension capital (system of capitalisation) based on the investment of deposits by the person concerned and increased by the investment returns.
Contribution payments
- Minimum contribution (EUR 100 per year) and maximum contribution rate of 8.17% of professional income with an absolute maximum of EUR 3,291.30 (in 2021).
- For schemes with a solidarity system (providing additional benefits in case of e.g. temporary incapacity for work, sickness, death): minimum contribution (EUR 100) and maximum contribution rate of 9.40% of professional income with an absolute maximum of EUR 3,786.81 (in 2021).
Incentive strategy
- Contributions are fully tax-deductible as operating expenses within 80% rule (maximum of all statutory and supplementary pensions of last gross income).
- The person can conclude an ‘ordinary’ or ‘social’ pension agreement with a pension institution of the person’s choice.
- The ‘Financial Services and Market Authority’ (FSMA) monitors pension institutions' compliance with social legislation as well as the financial health and appropriate organisa-tion of pension funds.
- The payment of the supplementary pension is linked to the statutory retirement pension or is claimable, at the earliest, at the age of 60 years.
- No premature surrender possible except if reserves are to be transferred to a new pension institution or if construction plans are to be realised.
- Agreement has minimum duration of 5 years.
Pension payments
- The payments can be made via a one-time lump sum with a one-off capital payment, or life-long annuities with a periodic interest rate.
- Pension payments supplement those of the VAPZ.
Taxation and social security contributions
- Tax advantage through deduction premiums; tax advantage for one-off taxation of capital at a lower rate; two different rates (lowest one when person has worked until pensionable age: 10% versus 16.5%); withholding of health care and solidary contributions, municipal surcharges.
Legal Basis: Law of 15 May 2014 containing various provisions, Chapter 4: Supplementary Pensions for Company Managers (Wet van 15 mei 2014 houdende diverse bepalingen, Titel 4: Aanvullende pensioenen voor bedrijfsleiders).