The changes in the taxation of pension plans have been approved in the Law of General State Budgets and in order to correct the excess of commission of individual pension plans. According to a study by the Ministry of Mr. Escrivá and his explanations in professional forums, the managers of individual pension plans are charging an average of 1% per year more than collective company pension plans.
The new financial limits are 8,000.00 euros for the contributions made by the promoter, 2,000.00 euros for the contributions made by the participants to their individual pension plans and 10,000.00 euros for the joint contributions of the promoter and participant in the company pension plan. This is the case of companies and/or entities with occupational pension plans, which the worker could contribute up to 10,000.00 together with the promoter contributions to his company pension plan. It is a clear manifestation by the Government of Spain to favor the mobilization of individual pension plans to occupational pension plans.
The financial limits and tax limits are 30% of the taxable base and up to the financial limit to deduct the contributions and/or amounts charged by the promoter.
Consequently, the changes are for pension plans and similar products according to the regulations, such as insured pension plans, or insurance contracts of social security entities, such as mutuals.
It can also be explained that behind these tax changes, there is a belief on the part of the Government of Spain, that contributions to individual pension plans of amounts of 8,000.00 euros were made by taxpayers with high incomes compared to the average salaries of workers, and that the tax deductions that benefited were less income for the public finances or less social spending for workers.
The modifications are intended to promote savings for retirement within the company, to the detriment of private savings through pension managers.
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.