The Program Law of 22 June 2012 (I) introduced a new social security contribution of 1.5% on high pension premiums (see Laga Newsflash of July 2012), the so-called “Wyninckx contribution”. The calculation method for this contribution has been changed by the Program Law of 27 December 2012 (published in the Belgian Official Journal of 31 December 2012).
Until 1 January 2016, this special contribution amounts to 1.5% of the contributions financing an occupational pension scheme (or promise) which exceed the annual threshold of 30,000 EUR.
Pension providers (insurance companies or pension funds) must report all calculation data to SIGeDIS (1) at the latest on 30 June of each contribution year. The first reporting must be done on 30 June 2013 and will relate to contribution years 2012 and 2013. SIGeDIS will; in turn, communicate all necessary information for the calculation and payment of the special contribution to companies no later than 30 September of each contribution year (for the first time no later than 30 September 2013).
However, the first special contribution is due in the fourth quarter of 2012. Companies must submit their first declaration to the NSSO and pay their first contribution before 31 January 2013.
The special contribution is calculated on the basis of employer’s and employee’s contributions financing an occupational pension scheme (or promise). Contributions funding retirement benefits as well as contributions funding death benefits are taken into account.
For defined contribution schemes and cash balance schemes, the status of the individual accounts of the year preceding the contribution year is taken into account. For defined benefit schemes, the difference between the vested reserves on 1 January of the contribution year (or the last normal calculation date of the year preceding the contribution year) and the vested reserves on 1 January of the year preceding the contribution year is taken into account (or the last normal calculation date of the year prior to said date) (2).
If the threshold of 30,000 EUR is exceeded, the special contribution is only due on the part of the employer’s contributions (not the employee’s contributions (3)) exceeding the threshold.
Recommendation
We recommend that companies contact their pension provider in order to obtain all necessary information for calculating and paying the special contribution.
(1) Sociale Individuele Gegevens/Données Individuelles Sociales.
(2) Capitalised at 6%.
(3) As mentioned above, the employee’s contribution is used to determine if the threshold is met.
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