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PAY_BE_CAPF_072 - Voluntary Additional Pension: Overview

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The Voluntary Additional Pension (VAP) scheme allows employees to build up a pension in the second pillar. The VAP is financed via deductions to the employees' net wages. The employer determines, within the legal limits, the amount to be deducted.

As part of the VAP, employees decide themselves on a pension agreement with a pension fund. Employees pay the agreed pension contribution, which is deducted from their net wages. The employer only has the obligation to deduct and transfer the contribution to the pension fund of the employee's choice.

If, later on, an employer decides to initiate a pension saving scheme in which the employer is responsible for the payment of the contributions made to the pension fund, this scheme does not longer fall under the VAP legislation, but under the legislation for additional pensions (with an employer contribution towards an additional pension).

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Length: 1034 Date: 20240523 Time: 204341     sap01-206 ( 34 ms )