Article 83
The Article 83 scheme enables you to receive additional retirement income financed largely with compulsory contributions paid in by your employer.
Key information
Finance supplementary retirement savings thanks to your employer
From the moment you join the scheme, you will be assigned an individual retirement account that will be topped up with contributions paid in regularly by your employer.
You have the option to make voluntary payments and to convert unused leave or days registered in your Time Savings Account if so allowed under your scheme.
Select the type of financial management that suits you
You may choose between two financial management regimes depending on your needs and objectives.
You may change your mind at any time free of charge.
You have the option to secure some or all of your savings by investing in the euro-denominated Sécurité vehicle.
Release your retirement savings under various circumstances
There are specific cases allowing for early release during your working life so that you can receive your savings in the form of a lump sum in the event of unforeseen circumstances.
How does it work?
You may benefit from an Article 83 scheme if one has been set up by your employer and you have joined it.
Your company pays compulsory contributions and employee contributions into your individual retirement account on a regular basis, building up retirement savings on your behalf that you can top up by making optional individual payments and by converting unused leave or Time Savings Account entitlements if so allowed under your scheme.
When you retire, you may select the type of annuity that is best suited to your circumstances and those of your relatives or choose to release your savings in a lump sum if your annuity is less than or equal to €1,200 per year.
Should you run into financial difficulties, you may withdraw your savings in a lump sum under specific circumstances allowing for early release permitted by the plan.
How are your savings invested?
Your savings may be invested in:
- The euro-denominated Sécurité vehicle, the annual revaluation of which is fully vested. The amount of savings invested therefore increases year after year. The interest calculated generates interest in subsequent years. This vehicle consists mostly of bonds with a very cautious investment profile.
Other (unit-linked) vehicles covering different investment objectives, asset classes, regions, business sectors and risk levels. Note that unit-linked vehicles entail a risk of loss of capital.
You may manage the savings available in your individual retirement account in one of two ways:
- Manager-guided investment, which consists in delegating management of your savings to asset management experts; this enables you to take advantage of the opportunities offered by the financial markets by investing in various vehicles and to gradually secure your savings until you retire.
- Self-managed investment, which enables you to freely choose how your savings are allocated between the various financial vehicles and to change this allocation whenever you so wish.
You may switch from one type of management to another at any time free of charge.
What happens to your savings if you change company?
Your retirement savings will continue to grow even if you leave the company.
You may continue to make optional individual payments, either on a one-off basis or via a standing order, provided you have not joined an Article 83 scheme subscribed by your new employer.
What happens to your savings in the event of death?
Beneficiaries are designated by default when you join the scheme. However, you may make use of the beneficiary clause if you yourself wish to designate the beneficiaries of your savings should you die before your retirement. This choice may be modified at any time but becomes irrevocable if accepted by the beneficiary.
Our schemes also allow for a minimum guarantee which ensures that your beneficiaries will, at the very least, receive the accumulated amount of net contributions paid in since you joined the scheme, thereby offering protection against volatile financial markets.
What is the tax regime applicable to this scheme?
Your scheme offers the following tax benefits:
- Compulsory contributions paid into your individual retirement account are excluded from your taxable income.
- The voluntary payments you make may be deductible from your total taxable net income within certain limits stipulated by law.
- You may combine the cap on the maximum tax-deductible amount paid in with that of your spouse or civil partner, and thus increase the benefits of this favourable tax regime.
- Transfers made from your Time Savings Account or unused leave are deductible from your gross income, up to a deductibility threshold for contributions paid into the supplementary retirement plan. Above this level, days converted are not exempt from income tax.
The information provided above is not exhaustive and does not include full details of the scheme’s tax regime.