If there is a pension gap, this can be partly or fully closed by a voluntary purchase or supplementary contributions into the pension fund. A purchase of benefits is possible at any time. A requirement for this is that all vested benefits in previous pension plans are transferred into the Pension Fund. Any further requirements are set out in the application form to be handed in to the Pension Fund for processing.
Advantages for the insured member
- Increased old-age and also survivors' benefits and vested benefits
- Basic deduction of the purchase amount from one's taxable income.
Other terms and conditions
If a benefits purchase is made, the resulting benefits may not be withdrawn as a lump-sum from the Pension Fund within the next three years.
If an allowable lump-sum withdrawal is made within three years of effecting the purchase, then the tax deduction will be denied retroactively.