Occupational Pensions: the "Wyninckx contribution" for 2012 - to be paid early 2013

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Date:
20 Dec 2012

<p>According to the draft Programme Act, the "Wyninckx contribution" of 1.5% on pension contributions exceeding the annual threshold of 30,000 EUR is due for the first time in the fourth quarter of 2012. Companies must submit their declarations directly to the NSSO/NISSE in the first quarter of 2013.</p>

According to the draft Programme Act, the "Wyninckx contribution" of 1.5% on pension contributions exceeding the annual threshold of 30,000 EUR is due for the first time in the fourth quarter of 2012. Companies must submit their declarations directly to the NSSO/NISSE in the first quarter of 2013.

On 1 January 2012 a new special social security contribution was introduced (the so-called "Wyninckx contribution"). This special contribution amounts to 1.5% of the contributions financing an occupational pension scheme/promise, which exceed the annual threshold of 30,000 EUR (see Newsletter of 6 July 2012 ).

The Parliament is currently discussing the draft Programme Act, which will change the calculation method of the Wyninckx contribution. However, it is not clear in the draft text when this Wyninckx contribution should be paid for the first time.

The pension institutions should report all calculation data to SIGeDIS at the latest on 30 June of each contribution year. Such reporting must be done for the first time on 30 June 2013 and this for both the contribution year 2012 (data of 2011) and the contribution year 2013 (data of 2012). The date of 30 June 2012 only relates to the reporting of the data to SIGeDIS. It does not determine the due date or date of payment of the Wyninckx contribution for 2012.

The Wyninckx contribution is, therefore, due for the first time in the fourth quarter of 2012. Companies must submit their first declaration to the NSSO/NISSE in the first quarter of 2013. The first payment of the special contribution 2012 (based on the data of 2011) must be made in the first quarter of 2013.

The Wyninckx contribution should be calculated on the employer and employee contributions financing an occupational pension scheme/promise (retirement and death coverage). For defined contribution and cash balance schemes/promises, the status of the individual accounts of the year preceding the contribution year is taken into account. For defined benefit pension schemes/promises (collective capitalization) one should take into account the difference between (i) the vested reserves on 1 January of the contribution year (or on the last normal calculation date prior to said date), and (ii) the vested reserves on 1 January of the preceding year (or on the last normal calculation date prior to said date) (capitalized at 6 %).

If the threshold of 30,000 EUR is exceeded, the special contribution is only due on the part of the employer contributions exceeding said threshold.

> Action point:

We recommend companies to ask their pension institution (insurance company or pension fund) for the necessary data in order to be able to submit their declaration to the NSSO/NISSE in due time.