Personal pension savings

Eployees are entitled to contribute to personal pension savings, which are their personal property, and to pay voluntary contributions to them as provided for in the rules of their personal pension funds.

Employees and self-employed persons can pay up to 4% of their gross wages into a personal pension fund. These contributions are tax-exempt at source.

Collective bargaining agreements provide for a 2% employer's contribution to an employee's personal pension fund, which means that persons who contribute at least 2% and up to 4% of their savings in this manner receive a 2% contribution from their employer.

Personal pension savings are available for withdrawal once a fund member has reached 60 years of age. The fund member then decides how to withdraw his/her savings (in a lump sum or spread over a longer period).

Supplementary/personal pension savings are fully inherited under the inheritance laws upon the death of fund members.

It is simple to create a personal pension savings account. You only need to complete an agreement for personal pension savings and send it to the fund. After that the fund will forward a copy of the agreement with a letter to your employer.

Personal pension savings are an extremely advantageous savings option. The contributions are exempt from income tax withheld at source. Returns are also exempt from financial income tax. Your personal pension savings are protected by law from collection actions. The employer's 2% contribution is the equivalent of a wage raise. Under certain circumstances, personal pension savings withdrawn are exempt from tax withheld at source ( for purchase of real estate ). Generally, income tax is withheld on personal pension savings when withdrawn.