BVI has always been committed to strengthening private pension provision. Because of demographic developments, state pension funding will only be able to provide a basic level. In the current discussion on private provision for old age, we advocate a new, lean Riester pension with significantly less complexity and bureaucracy. Specifically, we have submitted the following proposals to the legislator:
Enlargement of the circle of eligible persons - self-employed persons should also be able to receive a Riester style pension
Simplification of the subsidy system - pure bonus subsidy (50 cents subsidy for every euro paid in) instead of a coexistence of basic bonus and tax deductibility
Reduction of complexity - no grant application procedure
More flexible premium guarantee in order to take better account of individual customer needs.