Premium-Aided Pension Savings Schemes | Max-Planck-Institut für Sozialrecht und Sozialpolitik - MPISOC
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Premium-Aided Pension Savings Schemes

Prämienbegünstigte Zukunftsvorsorge

1 Requirements for state subsidies: such as special requirements for investment (certain percentage of shares); companies have to guarantee that sum of invested capital contribution payments (plus state allowances) is available at beginning of payout phase; binding of the paid-up capital for at least 10 years; life-long annuity paid monthly; state subsidies capped at a maximum amount; persons are entitled to change the level of contributions or suspend account for fixed-time period; possibility of transfer to other institutions after 10 years; at this time it is also possible to request premature lump-sum payment (but partial loss of state subsidies and subsequent taxation in this case).

Legal Basis: Income Tax Act (Einkommensteuergesetz 1988); Insurance Contracts Act (Versicherungsvertragsgesetz); Insurance Supervision Act (Versicherungsaufsichtsgesetz 2016).