Retirement Insurance is a product designed to complement the public pension through a system of provision or contributions facilitated by the company.
When the time comes, the employee can choose how to receive the capital accumulated with their insurance:
- As a lifetime income.
- Receiving all the capital
- In a mixed way: a part in capital and another part in lifetime income.
Limits and tax exemptions
This benefit is considered a fringe benefit and is exempt from taxes. When the company offers the product to its employees (either as a Social Benefit or as Flexible Remuneration), it must decide whether to attribute the premiums to the employees or not.
- If they are attributed, there will be no tax exemption. At the time of retirement, the employee will pay taxes on the difference between the contributions and what they received (the capital gain). The company can deduct the contributions from the Corporate Tax. However, the compensation for the employee is so negative that it is very rare for a company to do so.
- If they are not attributed, they will still be considered the property of the employee. When the benefit is received, taxes will be paid on the total amount. That amount will be added to the amount that the employee must pay in taxes on their labor income. When the employee receives the benefit, the company can deduct the total amount from the Corporate Tax. This option is the most common and is used in flexible remuneration plans.
How to activate the benefit
If it is the first time you want to activate this benefit, you must contact firstname.lastname@example.org so that you can see the different Retirement Insurances we have and decide which one you want to contract.
Once it is contracted, to activate the benefit, simply click on the "Activate benefit" button.
Once you activate it, the personnel assigned to that group of employees can use the Retirement Insurance Benefit and start making requests.