The Reform of the complementary social security

On the 1st January 2007 new rules regarding the complementary social security will enter into force.

The Reform of the complementary social security is based on the Retirement Allowance which is the part of salary the employer pays aside during the working period of his employee and which the latter receives when the working relation ceases to exist.

The employee will have 6 months as of 1st January 2007 to decide if to go on letting the employer manage his Retirement Allowance or if to assign it to a complementary social security fund. The Retirement Allowance which can be assigned to the fund is only the one which has accrued since 1st January 2007. The Retirement Allowance accrued until 31st December 2006 will be kept within the company and reassessed on a yearly basis according to the usual rules.

Shouldn’t the employee make any choice, the Retirement Allowance accrued as of 1st January 2007 will be automatically assigned to a complimentary social security fund.