Voluntary Supplementary Pension Scheme for the Self-Employed
Vrij aanvullend pensioen voor zelfstandigen, VAPZ
Coverage
Voluntary participation
- All self-employed, the assisting spouse and the helper.
- Benefits of this scheme can be topped up with two additional schemes (one excludes the other): the IPT or the POZ.
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 deductible and exempted from insurance tax.
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 organisation 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.
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.
- The guaranteed return is 0.5%, i.e. the right to reimbursement of the sum of contributions paid by the pension institution (if not used to cover death before retirement or to provide solidarity benefits, and no guarantee as to a pension within 5 years).
Taxation and social security contributions
- Capital taxed on basis of a fictitious interest through a notional interest rate system: age determines how much and how long taxes must be paid (only maximum percentage of capital is taxed, and profit sharing is free from tax).
- Benefits are fully deductible, no insurance tax to be paid; withholding of health care and solidary contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- All self-employed, the assisting spouse and the helper.
- Benefits of this scheme can be topped up with two additional schemes (one excludes the other): the IPT or the POZ.
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 deductible and exempted from insurance tax.
- 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 organisation 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.
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.
- The guaranteed return is 0.5%, i.e. the right to reimbursement of the sum of contributions paid by the pension institution (if not used to cover death before retirement or to provide solidarity benefits, and no guarantee as to a pension within 5 years).
Taxation and social security contributions
- Capital taxed on basis of a fictitious interest through a notional interest rate system: age determines how much and how long taxes must be paid (only maximum percentage of capital is taxed, and profit sharing is free from tax).
- Benefits are fully deductible, no insurance tax to be paid; withholding of health care and solidary contributions.
Legal Basis: Programme Law of 24 December 2002 (Law on Supplementary Pensions for the Self-Employed) (Programmawet van 24 december 2002).