As an independent business owner, it is important to invest your funds in a tax-efficient manner with the prospect of a nice return. It is recommended to find a clever way of handling the excess reserves rather than letting them evaporate in the corporate account. But what are good and tax-efficient alternatives for your available funds besides the standard supplementary pension schemes such as EIP and PLCI?
Do you have to provide your employee with the statutory and contractual pension statement?
Most insurers will issue two different pension statements from now on. Do you have to provide your employee with the statutory and contractual pension statement?
Since 2016, all citizens will be able to consult the data about their supplementary pension on the www.mypension.be website. The online data will always relate to the situation as at 1 January of the year in question. In order for this data to correspond with the annual pension statement (benefit statement) from the insurer, insurers are by law required to issue a uniform pension statement that shows the position on 1 January, even if the group insurance has a different annual review date. From now on this pension statement will only be prepared for active members; dormant members and retirees can consult their supplementary pension rights on mypension.be.
This means that most insurers will issue two different pension statements from now on:
- a statutory pension statement showing the position on 1 January;
- a contractual pension statement showing the position on the annual review date, if other than 1 January, or with additional data not given on the statutory pension statement.
The insurer – and by extension the employer – is only required to issue members with the statutory pension statement showing the position on 1 January. However, we do recommend sending out the contractual pension statement too, as that statement shows any changes made (e.g. following a salary increase).
Low market interest rates mean that insurers can barely, if at all, meet employers’ obligations to their employees in their Branch 21 offerings with guaranteed interest rates. Wim Lourdaux, Executive Account Manager and Katrien De Keuster, Account Manager at Vanbreda Risk & Benefits outline the alternatives through the Branch 23 formulas.
The government wants to offer the self-employed the chance to set up a full pension with supplementary pension schemes, such as an individual pension policy (EIP) and an optional supplementary pension for the self-employed (PLCI). The current statutory pension for the self-employed is often insufficient to maintain the same living standard after retirement.