Supplementary pensions are also available for one-man businesses from 2018

The Pension Agreement for the Self-Employed (or CPTI/POZ) is a new type of supplementary pension for one-man businesses. From 2018, all self-employed people who are not a company will be able to benefit from this new system.

Supplementary pensions are now available for one-man businesses

After the increase in the minimum pension, the CPTI/POZ is therefore a new way of making being self-employed more attractive. Self-employed people can build up a supplementary pension through PLCI/VAPZ (Voluntary Pension for the Self-employed) and EIP/IPT (Individual Pension Plan). The premium for the PLCI/VAPZ is limited to 8.17% of your net taxable income from three years’ previously, up to a ceiling of EUR 3,127.24 in 2017, or 9.40% with a ceiling of 3,598.05 if it is a “social” PLCI/VAPZ, including insurance.

Thanks to the 80% rule, an EIP/IPT yields a much higher supplementary pension, but this is only available to self-employed people with a company.

An IPT for one-man businesses?

By introducing the CPTI/POZ, the government wants to fill the gap left by the lack of a worthwhile supplementary pension structure for one-man businesses. This means that self-employed people can invest more in their pension plan and enjoy greater tax benefits. The CPTI/POZ is really an alternative type of EIP/IPT for one-man businesses. The tax benefit will probably be 30%, provided the 80% rule is respected, and the pension capital when paid out will likely be taxed at 10%.

As soon as we know more details and things are certain, we will of course bring you up to date. We can well assume that with the introduction of the CPTI/POZ, the government wants to ensure that the 432,500 one-man businesses in the country will be able to enjoy a nice pension in their old age.

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