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Practical Income Manual 2020.

4. Contributions to corporate social security plans

The contributions made by workers to the corporate social security plans regulated in the first Additional Provision of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29, relating to the protection of pension commitments with workers, including the contributions of the policyholder.

Please note that the aforementioned first Additional Provision of the consolidated text of the Law on the Regulation of Pension Plans and Funds has been modified, with effect from September 4, 2018, by the first article of Royal Decree-Law 11/2018. , of August 31, transposing directives on the protection of pension commitments with workers, prevention of money laundering and entry and residence requirements for third-country nationals and modifying Law 39/2015 , of October 1, of the Common Administrative Procedure of Public Administrations ( BOE of September 4).

In any case, corporate social security plans must meet the following requirements :

  1. The principles of non-discrimination, capitalization, irrevocability of contributions and attribution of rights established in article 5.1 of the consolidated text of the Law on the Regulation of Pension Plans and Funds must be applicable to this type of contract.
  2. The policy will establish the premiums that the policyholder must pay, which will be charged to the insured.
  3. The conditions of the policy must expressly and prominently state that it is a Corporate Social Security Plan, with this name being reserved for insurance contracts that meet the legally established requirements.
  4. The contingencies covered must be only those provided for in article 8.6 of the consolidated text of the Law on the Regulation of Pension Plans and Funds (retirement; total and permanent work incapacity for the usual profession or absolute and permanent for all work, and severe disability; death and severe dependency or great dependency of the participant), and must have retirement coverage as its main coverage in the terms established in article 49.1 of the Personal Income Tax Regulations .
  5. Corporate social security plans will have to offer an interest guarantee and use actuarial techniques.