Pension plan – February

Surprisingly, the interpretation that one Pension Fund has made, at least, of the modifications contained in the General State Budget Law for the year 2021, in relation to the new contribution limits to pension plans, has been restrictive. Textually, the Law says business contributions, not contributions from the promoter, and with this interpretation the maximum contribution limit of a worker is 2,000 euros added between the contribution to his pension plan plus the contribution as a participant to his company pensions plan, the joint limit of the occupational pension plan being 10,000 euros (2,000 euros for the participant and 8,000 euros for the promoter). This interpretation is not the one explained by Minister Escrivá in professional forums. The minister interpreted as business contributions, the contributions of the promoter and the individual as a participant.

This interpretation further complicates the situation, because the promoter contributions conditional on the participant’s contributions are affected by the joint maximum limit of 2,000 euros (the participant’s contributions to his employment pension plan and to his individual pension plan).

The resistance to channeling individual savings through their employment pension plans and being able to reduce management expenses continues and we will have to wait for Inverco, the employer’s association for the pension fund sector, which has already taken the necessary measures, to clarify this issue in front of official entities.

Jaume Quibus

The actuary and economist Jaume Quibus holds a master’s degree in Financial Economics and Accounting, a degree in Actuarial and Financial Sciences, a degree in Economic and Business Studies from the University of Barcelona and has completed the Management Development Programme at the IESE Business School of the University of Navarra. He is a full member of the following associations: the Catalan Actuarial Association, the Spanish Actuarial Association, the Catalan Economists Association, the International Actuarial Association, the Catalan Association of Accounting and Management and also a member of the IESE Business School Alumni. He was a founding partner in 1998 of the actuarial company Quibus, and is corporate member number 6 in the Catalan Actuarial Association.