Scala Privilege Individual Pension Agreement: save for your supplementary pension through your company

 Individuele Pensioentoezegging Scala Privilege: spaar voor je aanvullend pensioen via je vennootschap

As a self-employed company director with a fixed monthly salary, you can use your Individual Pension Agreement (IPT) to save for a supplementary pension. This is more tax-efficient than a pay rise or dividend!

Is Scala Privilege right for you?

  • Are you a self-employed professional with a company, and do you receive a regular salary every month?
  • Do you want to save for a supplementary pension in a tax-efficient way?
  • Do you want to protect yourself, your partner and/or your children in the event of death or incapacity for work?

Then Scala Privilege – NN's Individual Pension Agreement – is definitely right for you.


What are the benefits of an Individual Pension Agreement (IPT)?

Finance your pension in a tax-efficient way through your company

The IPT premiums are paid in full by your company, with yourself as the beneficiary. The premiums are deductible as business expenses within the limits of the 80% rule3.

Protect yourself and your loved ones by providing financial stability

Your income contributes to the present and future quality of your life. If you are unable to work for a time due to illness or an accident, you can replace part of your lost income with what is known as a guaranteed income.
Even worse, if you were to pass away unexpectedly, your income would disappear permanently. You can reduce the financial problems for your partner or family by taking out death cover now.
By taking out optional risk cover against Death and Incapacity for Work, you can guarantee financial security.

Choose to save for your supplementary pension under Branche 23 / Tak 23 or Branche 21 / Tak 21

  • Investing in Branche 23 / Tak 231 comes with no guaranteed lump sum, but does offer the prospect of higher potential returns in the long term. You can also choose from an extensive selection of funds, ranging from the defensive to the dynamic.
  • You can also choose an umbrella fund that matches your profile, as for each risk profile, our experts select various funds that they actively manage
  • Saving under Branche 21 / Tak 21 offers a guaranteed interest rate and a guaranteed lump sum. Any profit share2 can then be invested more dynamically in Branche 23 / Tak 231, if you wish.

Tax-efficient investment in private real estate

Do you have plans to build, buy or renovate a property? You can make all your plans a reality right now with your Scala Privilege IPT.

What are your options?

  • a bullet loan: a mortgage with reinstatement of capital built up using an IPT.
  • a tax-efficient advance on the reserve in your contract
  • a notarised pledge of your contract when you buy, build or renovate a property*

Catch-up contribution or back-service

Had you already spent a few years working for your company before you took out an IPT? Or were you previously not self-employed? In either case, you can pay premiums retroactively in order to "catch up" on past contributions for up to 10 years previously, provided that you adhere to the 80% rule3. These premiums are also tax-deductible for your company.

Your broker will be happy to advise you what would suit you and your personal situation from among the different options.

Premiums and taxes

Premiums

- Minimum: EUR 1,500 per year (EUR 1,000 when combined with a group or company director insurance policy)
- Maximum: the final pension built up may not be higher than 80%3 of your final normal annual gross salary.
In order to calculate your final pension, we look at your statutory pension as well as any other supplementary pension contracts, such as a Private Supplementary Pension (VAPZ) or a group insurance policy.

The premiums for any types of supplementary cover are calculated on top of this budget (apart from the premium for death cover).

General

Taxes on premiums

- pension: 4.40%
- death: 4.40%
- incapacity for work: 9.25%

Entry fees: maximum 7%

You can find all the details in the financial information sheet

Annual management fees

You can find all the details in the financial information sheet

Contributions and tax on payout

  • tax-efficient final tax on capital5
     
Age when the retirement lump sum is paid out Final tax (excluding municipal tax)
60 20% (or 16.5% at effective statutory retirement)
61 18% (or 16.5% at effective statutory retirement)
62 16.5%
65 or above, if actually working until that age 10%

 

  • RIZIV/INAMI contribution of 3.55% of the total amount paid in (excluding incapacity for work)
  • solidarity contribution of 0% to 2% of the total amount (excluding incapacity for work)
  • any profit shares2 are exempt provided that the profit-sharing is settled at the same time as the annuity, the capital or the surrender value of the VAPZ agreement tax on lump sum death benefit: 16.5% (+ municipal tax) and death duties
  • payouts for incapacity for work are taxed as replacement income
  • Wijninckx contribution: a special NSSO contribution of 3% that employers are required to pay on supplementary pension premiums or contributions that exceed the indexed threshold of EUR 30,000 per year (excluding tax)
Term of the contract

The minimum term is 5 years. The earliest payout date on the contract is the date on which you begin to receive your statutory pension. This is defined by law, and the statutory retirement age is currently 65. The statutory retirement age will increase to 66 in 2025, and to 67 in 2030.

If you took out your contract before 1 January 2016, and you were born in 1961 or earlier
then you will be subject to transitional rules, which mean that under certain conditions you have the option to take your lump sum before you reach the statutory retirement age. Your broker will be happy to go through the details with you.

Please also see this table:

Age in 2016 payment of the supplementary pension from
58 and up 60 years old
57 61 years old
56 62 years old
55 63 years old

Extra financial protection for your family

Good financial planning includes arranging full protection for your standard of living and for your family's needs. The optional types of cover that come with the Scala Privilege IPT give you peace of mind.

Exclusions and restrictions

You can find a full explanation of our segmentation policy here

For this product, the Branch 23 part is not suitable for US Persons. NN Belgium nv/SA does not act under the supervision of the American regulator SEC with regard to the Branch 23 part. Click here for more info.

Essential documents

Before you sign your insurance policy, it is essential to go through the following information.

Noodzakelijke informatie

Voor je deze verzekering onderschrijft, is het noodzakelijk om bovenstaande informatie door te nemen. 

Documents nécessaires

Avant de contracter cette assurance, il est nécessaire de prendre connaissance des informations ci-dessus.

Protect your business

Our company director insurance (Scala Keyman) covers your company's fixed costs

Have you already thought about this?

Protection for the share ownership in your company

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

Footnotes

  1. Branche 23 / Tak 23: In Branche 23 / Tak 23 investments, neither the capital nor the return are guaranteed. The risk is fully borne by the policyholder. Your return will depend on the evolution in the value of the underlyings. There is no entitlement to profit sharing.
  2. Profit share: the company may distribute and allocate a profit share each year at its sole discretion in accordance with the profit-sharing plan submitted to the Financial Services and Markets Authority (FSMA) and following the approval of the general shareholders' meeting. This variable profit share shall be based on the company's results and developments in the financial markets. Profit share allocation cannot be guaranteed for the future.
  3. 80% rule: This rule states that mandatory and supplementary pensions, expressed as annual pension payments, may not be higher than 80% of the final normal annual gross salary. This does not take individually agreed contracts into account. All details are available here.
  4. An advance or registered pledge is possible if it concerns an improvement, renovation or repair of real estate located in the European Economic Area that will generate taxable income for the insured.
  5. A bullet loan makes it possible to purchase real estate in the European Economic Area.
  6. Apart from some legal exceptions, the supplementary pension payment must be paid out at the time when the employee actually retires. If an employee retires after the statutory retirement age, the employee may choose when the payment of benefits and reserve should occur – either when they reach the statutory retirement age, or on their actual retirement date.