Germany: the Court of Justice will rule on State premiums to retirement savings accounts

The European Commission decided to attack Germany before the Court of Justice because it has failed to change its legislation on the premiums to encourage retirement savings-accounts (Altersvorsorgezulage known as "Riester-Rente") which is an obstacle to workers' mobility. (Réf. 06688)
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The “Riester-Rente“, is granted to employees who open a retirement savings account. They have to be completely subjugated to income tax in Germany. The Commission considers that this triggers an inequality of treatment between residents and non-residents, which violates the provisions of the treaty on freedom of movement of workers and people. This help is paid in cash to the worker’s private retirement agency. The amount depends on the retirement contributions paid by the worker.

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