3. Premiums paid to insured pension plans

Insured pension plans, whose premiums may be subject to a reduction in the general tax base, were incorporated into the social security systems, as of January 1, 2003, with the partial reform of the Personal Income Tax operated by Law 46/2002, of December 18 ( BOE of 19).

Insured pension plans are legally defined as insurance contracts that must meet the following requirements :

1. The taxpayer must be the policyholder, insured and beneficiary.

   However, in the event of death, it may generate the right to benefits under the terms provided in the regulations governing pension plans and funds.

2. 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 approved by Royal Legislative Decree 1/2002, of November 29 (retirement; total and permanent work incapacity for the usual profession or absolute and permanent for all work, and severe disability; death of the participant or beneficiary 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 .

   Advance provision, in whole or in part, will only be allowed in these contracts, in the cases provided for in article 8.8 of the consolidated text of the Law on the Regulation of Pension Plans and Funds (long-term unemployment, serious illness and from 2025 for contributions 10 years old).

   Furthermore, as a consequence of the health crisis caused by Covid-19, the twentieth Additional Provision of Royal Decree-Law 11/2020, of March 31, which adopts complementary urgent measures in the social and economic sphere to address the Covid-19 (BOE of April 1) and article 23 of Royal Decree-Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment (BOE of 22), exceptionally established and exclusively during the period between March 14 and September 14, 2020, the possibility that pension plan participants could make effective their consolidated rights in certain cases of unemployment, cessation of activity or reduction in billing. Assumptions discussed in this Chapter, within the common rules applicable to contributions to social security systems, in the section on early disposal of consolidated rights .

   The right of early withdrawal will be valued at the amount of the mathematical provision to which no penalties, expenses or discounts may be applied. However, in the event that the entity has investments affected by the right of early disposal, it will be valued at the market value of the assigned assets.

3. Insured pension plans will have to offer an interest guarantee and use actuarial techniques.
4. The conditions of the policy must expressly and prominently state that it is an insured pension plan.

5. Policyholders of insured pension plans may, by unilateral decision, transfer their mathematical provision to another insured pension plan of which they are policyholders, or to one or more pension plans of the individual or associated system in which they are participants. Once the contingency is reached, mobilization will only be possible if the conditions of the plan allow it.

   The procedure to carry out the mobilization of the mathematical provision is regulated in article 49.3 of the Personal Income Tax Regulations