NN Scala Privilege - IPC

NN Scala Privilege - IPC

If you are a self-employed senior executive with a fixed monthly salary, then an IPC or Individual Pension Commitment may be an attractive option for saving for a supplementary pension.

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The Individual Pension Commitment

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Is fiscally more attractive than a salary increase or a dividend

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Protects you, your partner and your children in the event of work disability and death

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Allows you to choose how you save: Branch 21, Branch 23 or a combination

Objective

Using this product a tax-efficient supplementary pension can be built up via the company, whether or not with additional protection against the financial consequences of death and/or work disability. 

Who is it for?

This product is intended for companies
* that wish to supplement the pension of their self-employed business manager in a manner that is fiscally favourable;
* that are prepared to take risks in order to build up the pension (risks in the form of value fluctuations) and/or
* that are mainly interested in the additional protection against the financial consequences of detah and/or work disability 

Who is it not for?

This product is not suitable
* when the insured person's status is as an employee or public servant, or if the self-employed persons does not have the status of "self-employed business manager";
* for companies that are not prepared to to take a risk (in the form of value fluctuations) for building up a pension;
* when the person insured has 5 years or less to go before retirement age.  

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BENEFITS

Fiscally attractive

Your company pays the IPC premiums, with you as the beneficiary. Your company can deduct the premiums as professional expenses, within the limits of the 80% rule.

The rule states that statutory and supplementary pensions, expressed in annual benefits, may not be more than 80% of the last gross annual remuneration. No account is taken of policies taken out individually, such as pension savings.


Choose the way you save: Branch 23, Branch 21 or a combination

  • Branch 23: no capital guarantee, but possibly a higher return in the longer term.
  • Branch 21: capital guarantee and guaranteed interest rate. You can boost any profit-sharing by investing in Branch 23.
  • Fund of funds: for each risk profile our experts select various funds that they manage actively.


Optional risk cover

The optional risk cover for Death and Work Disability will give you more financial security.
These protective risk covers may make up for part of loss of income if you are suddenly unable to work due to illness or accident. That way if something happens to you.

Read more about the optional risk covers for Death and Work Disability.
 

Invest in property with Scala Privilege

Looking to build, buy or renovate? If so, you can use your Scala Privilege IPC.

  • A bullet loan: a bullet loan is a housing loan with the reconstitution of capital built up through an IPC. Read all about the bullet loan.
  • Take a low-cost
  • Or pledge your policy if you buy, build or renovate a property.


Catch up on contributions from the past

In certain cases, your company can for previous years. You can go back a maximum of 10 years – and the 80% rule also applies here.
As a company, you can also deduct the back-service in full as a professional expense.

Discuss with your broker which option is the most interesting for you. 

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RISKS
  • For Scala Privilege policy, you have the choice between the NN benefit + profit-sharing form of investment, or the capital guarantee + profit-sharing form of investment. Remember that the fixed interest rate is 0% per year for the Branch 21 portion. This interest rate per deposit is guaranteed throughout the entire term of the policy.
     
  • For investments in Branch 23, the capital and return are not guaranteed. The risk is borne in full by the policyholder. Your return depends on movements in the value of the underlying funds. There is no entitlement to profit-sharing.

Discuss with your broker what your investor profile is. This is essential for investing sensibly.

Tax matters

Company premiums and person premiums for pension/death

  • Tax: 4.4%
  • Tax of 9.25% on profit-sharing allocations
  • Wijninckx levy: special social security contribution of 3% if the statutory and supplementary pensions exceed the annual statutory ceiling.
  • Tax benefit: the premiums are deductible for the company to the extent that they build up a pension capital which, expressed in annual benefits and statutory pension included, does not exceed 80% of the last normal gross salary, taking a normal career of working activity into account.
  • The premiums are not considered taxable income for the senior executive.

Premiums for Work Disability

  • Tax: 9.25%

Outpayment on retirement

  • A solidarity contribution between 0 and 2% on the total gross amount
  • A RIZIV/INAMI contribution of 3.55% on the total outpayment
  • Tax: tax rate varies between 20 and 10% dependent on age at the moment of payout and career.
  • Municipal tax calculated on the tax rate
  • Outpayment in the form of an annuity: in addition to the tax stated above, withholding tax of 30% on 3% of relinquished capital. This is only on conversion of the capital into an annuity (surrendered capital) and if it is not a direct annuity.

Outpayment on death

  • 3.55% RIZIV/INAMI contribution if the beneficiary is the surviving partner.
  • Solidarity contribution: between 0 and 2% if the beneficiary is the surviving partner.
  • Tax rate: 16.5%, unless outpayment is after retirement and the person was effectively employed until retirement age. In which case it is 10%.
  • Municipal tax calculated at the tax rate

Please go through all of the information about taxes and premiums in the product sheet

Product sheet Scala Privilege

 

Fees and premiums

Premiums

- Minimum: 1,500 euro per year or 1,000 euro per year if combined with another policy for the self-employed

- Maximum: the final pension accrued may not be more than 80% of your last normal pre-tax annual remuneration.
To calculate your final pension, your statutory pension and other supplementary policies, such as a Free Supplementary Pension (VAPZ) or a group insurance policy will be taken into consideration.

Fees

Joining fees

  • Entry fee: maximum 7%
  • Management fees per year:
    • On the Branch 21 portion: from 0% to 0.1% annually
  • Redemption and withdrawal fee:
    • Maximum 75 euro (met indexed)
    • 5% of the amount of the redeemed gross reserves

Read full details about fees in the Product sheet Scala Privilege

Important documents

It is necessary to read the Essential Information Document & Document Other Pre-contractual Information before purchasing, subscribing, accepting, signing or opening an NN Omni care contract;

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Algemene voorwaarden Scala

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Productfiche Scala privilege

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Productfiche Scala privilege voor loontrekkenden

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Tak 21 beheersreglement

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Tak 23 beheersreglement Scala

Legal information

  • Scala Privilege is an Individual Pension Commitment with an interest rate guaranteed by the insurance company (Branch 21) and/or investment in investment funds (Branch 23)
  • Applicable law: Belgian law
  • The minimum term is 5 years.
  • Before signing on as a customer to the NN Strategy product, it is important to go through the documentation about this specific product. See the documents under “Important document” on this page.
  • This insurance product may only be subscribed by Belgian companies and by Belgian subsidiaries or branches of foreign parent trading companies.
  • Exclusions and restrictions: For this product, the Branch 23 portion is not suitable for US Persons. In relation to the Branch 23 portion, NN Belgium does not act under the supervision of the US regulator, the SEC. Click here for more information. 

If you have a complaint about your NN policy, please contact NN, Quality Team, 38 Fonsnylaan, 1060 Brussels. Send an e-mail in the first instance to klachten@nn.be. Or contact the Consumer Ombudsman Service at the Insurance Ombudsman, 35 de Meeûssquare, 1000 Brussels. Tel: +32(0)2 547 58 71, fax: +32(0)2 547 59 75, info@ombudsman.as, www.ombudsman.as. It is also possible at all times to take legal action.

Your unique life deserves a personal approach. That is why we are happy to help you find an independent broker in your area