Reforma savings plans vs. Open pension funds

Reforma Savings Plan Open Pension Funds
Reforma Savings Plan
Tax advantages
Reforma Savings Plan
  • You may get tax breaks for paying into a retirement savings plan. Contributions are the amounts invested into the Fund in the participant's name with tax benefits from the IRS, within the annual limits established by the legislation in force when the contributions are made.
 Open Pension Funds
  • You may get tax breaks for paying into an open pension fund. Contributions are the amounts invested into the Fund in the participant's name with tax benefits from the IRS, within the annual limits established by the legislation in force when the contributions are made.
Reforma Savings Plan
Drawdown
Reforma Savings Plan
  • It is important to note that you may have access to the money invested in the RSPs, via a partial or full reimbursement of the shares at any time. However, there are some tax contingencies that vary depending of the reimbursement basis (within or beyond the specific terms and conditions), the term and the total amount of the payments made. Specific conditions considered for the redemption include age-related retirement and being aged 60 or over, long-term unemployment, permanent incapacity to work, serious illness, attendance in Higher Education (for payments made up to 01/01/2007) and for the payment of installments on credit agreements guaranteed by a mortgage on a property intended for personal and permanent residence of the participant and for the death of the participant or his/her spouse, also including the members of the participant's household under certain conditions provided for by law.
 Open Pension Funds
  • It is important to know that the money invested into an open pension fund may only be made available by personal asset repayment in the event of early, age-related, or disability related pre-retirement and retirement and by the death of a participant. There are other exceptional cases in which you may request a repayment of the amount corresponding to your personal assets before the deadline: the participant's long-term unemployment, serious illness and permanent incapacity to work. Liquidity conditions will be applied within the Provisions of the Law and Fund Management Regulations.
Reforma Savings Plan
Repayment
Reforma Savings Plan
  • Redemption may be made in the form of capital (through a single payment), periodic payment (e.g. monthly), or through a mixed payment, combining part of the repayment in capital and other in income, or in the form of non-periodic partial payments (payments on capital without regular frequency). There are tax advantages at the time of repayment, by the reduction of the tax rate on capital gains, through income tax exemption.
 Open Pension Funds
  • Redemption may be made in the form of capital (through a single payment), periodic payment (e.g. monthly), or through a mixed payment, combining part of the redemption in capital and other in income, or in the form of non-periodic partial payments (payments on capital without regular frequency). There are tax advantages for repayment by the reduction of the tax rate on capital gains, through income tax exemption.
Reforma Savings Plan
Business plan
Reforma Savings Plan
  • In a Corporate Pension Plan, the rules of access to the plan override the above, essentially with regard to the contribution made by the company.
 Open Pension Funds
  • In a Corporate Pension Plan, the rules of access to the plan override the above, essentially with regard to the contribution made by the company.