GERMANY - A social tax exemption for deferred compensation plans will be extended beyond 2008.
It should enable workers to contribute up to 4% of their salary to a deferred compensation scheme without being hit by social tax.
The exemption was set to expire at the end of 2008, unless the government prolonged it.
Germany’s trade body had reportedly argued the exemption would ensure employers had a cost-effective way of offering corporate pensions in addition to providing employees with an incentive to save.
A spokesman from the Ministry of Labour and Social Affairs said trade unions and labour organisations greeted the minister’s decision with approval.
Until now, he explained there had been debate whether it was worth extending the tax exemption when it was estimated this would create a €2.4bn shortfall in the country’s social security system.
But new data has now removed this problem, said the spokesman.
He said: “This new exemption makes a third pillar very attractive for low-paid people and large families.”
The German pensions ministry is now set to unveil a draft law that must be approved by government and parliament to prolong the exemption.
Females can expect to live a greater number of years in poor health than males, according to data from the Office for National Statistics (ONS) for 2015 to 2017.
Scottish higher-rate taxpayers will benefit from more pensions tax relief than workers on the same salary anywhere else in the UK as income tax bands continue to diverge.
Schemes risk breaking the law and being forced to wind up as The Pensions Regulator (TPR) warns some may be master trusts but do not know so.
As a hectic 2018 draws to an end, Jonathan Stapleton wishes readers a quieter 2019.