You can submit your request for payment online via MyAG Employee Benefits, by e-mail or by ordinary mail. The online method via your computer and our secure MyAG Employee Benefits tool is the fastest and easiest.
Before AG can release your payment, you'll need to answer a few questions.
Lump sum or annuity?
Specify how you want your supplementary pension benefits paid out to you.
Your pension plan regulations will specify how you can collect the supplementary pension benefits that you have accrued:
- as a single lump-sum payment?
- in several instalments, in the form of a regular annuity.
Lump sum
Taking the amount as a one-time lump-sum payout is by far the most common option in Belgium. You simply collect the entire lump sum on your retirement date, less any withholding tax (see below).
Annuity
If you take your group insurance proceeds as a lifelong annuity payment, you essentially get an additional source of income on top of your state pension. Payment frequency for this annuity can be monthly, quarterly, semi-annually or annually.
Tip 1: Tax treatment will vary depending on whether you collect your supplementary pension benefits as a one-time cash lump-sum payout or as a regular annuity.
Tip 2: If your pension plan regulations only allow you to take your benefits as a lump sum, you may later convert it into an annuity. This option is guaranteed by the Law on Complementary Pensions and must be offered by the employer. To find out more, read the product information on AG Ascento Life. Note that taxation will be different from the way an annuity originally planned in the group insurance regulations would be taxed.
Living abroad?
If your tax home or assets are located outside Belgium, AG is required by the Belgian tax authorities to deduct withholding tax at the time your supplementary pension benefits are paid out. This is not the case, however, if you fulfil both of the following criteria:
- Your country of residence has a double taxation treaty with Belgium.
- You are taxable in that country at the time of payment.
If you fulfil these conditions, please fill out the "Payment of group insurance benefits abroad" form.
To find out whether there is a double taxation treaty between Belgium and your country of residence, we recommend that you contact Belintax on +32 (0)2 57 634 70 or by e-mail at belintax@minfin.fed.be.
Taken out a cash advance or pledge against your group insurance benefits?
If you’ve taken out an advance against your supplementary pension and fulfil the criteria below, you’ll be taxed when your group insurance proceeds are settled in full.
- You’ve taken out an advance against your group insurance benefits to purchase, build, renovate, remodel or repair a home.
- This property is located in the European Economic Area.
- It is your sole and unique residence.
- This home is exclusively for the personal use of you and your family members.
When you cash out of your group insurance plan, the proceeds are normally subject to a one-time tax. But if you take out a cash advance or pledge against your group insurance benefits, your tax liability can be spread out over time in the form of a theoretical annuity:
- 1 to 5% of the borrowed amount (depending on your age at the time you take statutory retirement)
- For 10 or 13 years
- Up to a maximum cap (EUR 93,620 in 2023)
Important!
If you remain actively employed until your statutory retirement date, you'll be taxed on 80% of the amount borrowed, up to a maximum cap (EUR 93,620 in 2023).
If you pass away prior to collecting your supplementary pension benefits, your beneficiaries will also be taxed in the form of a theoretical annuity.
