What is a Private Pension System?
Private Pension Plan is designed to complement the existing public social security system that enables you to turn your saved earnings into investments via funds that are specific to your needs.
You can determine the contribution portion that’s going to be directed to the pension plan, change the contribution portion whenever you like, take a break from your contribution pay or leave the pension plan. Depending on your saving preference, different plans are offered. Your contribution pays will be used in the fund portfolio based on the analysis of your risk and income expectations. You can change your fund combination up to six times per year. No sequestration or pledge is applicable to your funds within the pension system based on government set rates.
The law enacted in 2012, introduced the Government Contribution to the pension plans. As of January 1, 2013, for every contribution, a 25 percent Government Contribution is received. Only your income will be subject to taxation...
If you leave the private pension system, any withholding tax will be charged only on your income and not on the total accumulation.
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