We’ve mentioned this before, but now it’s really a done deal. On 7 March 2017, the Senate agreed with the bill Phasing out of self-administered pensions and the associated novella.
What are the consequences?
We describe the consequences of this abolition in our memorandum Self-administered pensions are being abolished! What now? Particular attention must be paid to the position of the pensioner’s partner. And, of course, it is very important to consider the implications that the abolition of the self-administered pension will have on your financial and asset position; your financial planning. Naturally, the implications for your surviving dependants and your estate planning must not be overlooked.
Special offer!
If you have accrued pension entitlements with your own private limited company, you must arrange the following matters (or have them arranged).
- If you are still accruing your pension under self-administration, you must terminate this by 30 June 2017 at the latest (make the entitlement non-contributory).
- If you have insured claims held elsewhere: consider whether you wish to transfer them back to your private limited company (this must also be arranged by 30 June 2017 at the latest).
- To choose from the options available from 1 April 2017 regarding self-administered pensions:
- allow the policy to continue on a premium-free basis;
- to redeem tax-free and then redeem subject to tax, with a discount on the tax due (for redemptions in 2017, the discount amounts to 34,5% (based on the tax value of the entitlement as at 31 December 2015);
- to write off tax-free and convert it into a retirement liability (ODV).
Pleased to meet you!
If you have any questions about the abolition of self-administered pensions or would like us to take care of this for you, please contact our specialists.
- Nijmegen: Ton Vogel
- Wijchen: Paul Willems