Equalization of self-employed and employee pensions: what are the consequences for your IPT? (part II)

The baby and the bathwater.

In August 2021, we informed you that a new calculation of the statutory pension for the self-employed could well have a significant impact on the determination of the maximum supplementary pension for the self-employed person. A higher statutory pension would lead to a lower supplementary pension. Our conclusion last year was that, with regard to the 80% rule, the bathwater could do with a refresh, but that care had to be taken not to throw out the baby along with it. By this we meant that the calculation was indeed due for simplification, but that the supplementary pension had to remain sufficiently attractive. Simpler and more attractive, in other words.

It looks like our wishes were not fulfilled. Quite the opposite, in fact. On 31 March of this year, the FPS Finance published a circular that has since been widely discussed within our sector: "Circular 2022/C/33 on the determination of the statutory retirement pension in the context of supplementary pensions for company directors subject to the social status of the self-employed".

Let us briefly explain this... How much a company may maximally pay into an IPT for its paid director is calculated via the 80% rule, and depends, among other things, on the estimated statutory pension of that director. The way in which that estimated statutory pension is determined for self-employed directors is changing. For the self-employed career years from 2021 onward, the statutory pension will from now on be estimated at 50% of the income (taking into account applicable maximums and minimums), thus in line with the employee pension. But for the self-employed career years before 2021, an estimate may still be maintained at 25% of the 2020 income as a self-employed person (always taking into account the minimum statutory pensions). This means that the 2020 reference salary must always be included in the calculation of the 80% rule for future years.

What impact does this have for you as a client?

For a number of self-employed people, this new estimate of the statutory pension will lead to lower supplementary pensions under the familiar 80% rule, and consequently also to lower, tax-deductible, premiums.

Given that the insurers' calculation programs have not yet been adapted to this change (which, moreover, also applies retroactively from assessment year 2022 (income 2021) onward), Life Experts is already now applying a second, internal calculation based on the new estimated statutory pension. For this purpose, our checklists have been adjusted to take the 2020 income into account. For every calculation of the 80% rule, an internal check is carried out based on our own calculation model, which already takes the new circular into account. In this way, we offer our clients the best possible advice, taking the new reality into account.

The last word on the taxation of the second pillar pension has not yet been spoken. Together with the mood being created around backservice financing (more on that in another article), we get the impression, based on this circular, that the baby is indeed being thrown out with the bathwater. Fortunately, the tax administration was invited by Assuralia for a discussion. We are therefore hoping for a favorable outcome, because a healthy second pillar that can rely on stable and transparent tax rules has an important social role to play.