The section covers

• Rule
• Which value can be exempt
• Partial transfer
• Transfer of insurance or pension portfolios

Rule

Under Section 41 of PBL, pension fund savings can be transferred from one plan to another subject to specified conditions without this being considered a disbursement from the plan under PAL on which a 60 per cent tax would be levied. See LV General part, Section A.C.1.

In connection with a transfer under Section 41 of PBL, the right to reduction is maintained. See Section 10 of PAL.

In connection with a transfer under Section 41 of PAL of an insurance or pension plan or from an account with the Employees' Capital Pension Fund (LD), the value of the savings or the life insurance provision etc., respectively, at the end of 1982, cf. Sections 10(1)-(2) and (4) of PAL, is used as the basis for calculation of the exemption applying to the new plan. See Section 10(6), Item 1 of PAL.

In connection with the transfer, the cash value of the part of the savings which can be exempt pursuant to the provisions set out in Sections 10(1), (2) and (4) of PAL, forms the basis of the exemption under the new plan. See Section 10(6), Item 1 of PAL. However, this amount cannot exceed the actual amount transferred. See Section 10(6), Item 2 of PAL.

Section 10(5), Item 1 of PAL also applies in connection with partial transfer under Section 41 of PBL. See Section 10(6), Item 3 of PAL. See also section B.7.6, Partial disbursement.

Similar rules apply to the transfer of insurance or pension portfolios between insurance companies or pension funds, cf. Section 10(6), Item 4 of PAL. This may e.g. be the case where the pension plans in a company pension fund are replaced by life insurance being taken out with an insurance company.

The provision does thus not apply to contracts on annuities without bonus entitlement entered into before 1 May 1982, as these are exempted from taxation under PAL. See Section 1(1), Item 1 of PAL.

When a pension plan is transferred, the ceding bank or insurance company must disclose the necessary information for use in connection with the calculation of the basis of taxation and the reduction under the new plan. See Part 3 of Order no. 1540 of 13 December 2007.