Decree 168/2023 on the Regulation of Certain Issues Arising from the Application of Regulation (EU) 2019/1238

1332

O.J. of the EU, Part III(I)
No. 5802, 26.5.2023
G.D. 168/2023

Number 168

REGULATION (EU) 2019/1238 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 20 JUNE 2019 ON THE LAUNCHING OF A PAN-EUROPEAN PERSONAL PENSION PRODUCT (PEPP)

Decree under Articles 12, 47 and 57

Preamble.
Official
Journal of the EU: L 198,
25.7.2019, p.1.

Short title.
Interpretation.
Official
Journal,
Third Part (I):
8.11.2020,
(G.D. 420/2022)

Subject matter of the present
Decree.
Scope of the
Decree.
PEPP Sub-accounts.

For the purpose of harmonization with Articles 12, 47 and 57 of the European Union act titled "Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on the launching of a pan-European personal pension product (PEPP)".

The Minister of Finance, exercising the powers conferred upon him by Articles 12, 47 and 57 of Regulation (EU) 2019/1238, issues the following Decree:

1. This Decree shall be cited as the Regulation of Certain Issues Arising from the Application of Regulation (EU) 2019/1238 Decree of 2022.

2. (a) In this Decree, unless the context otherwise requires-

"Competent Authority" means the authority responsible for the supervision of the PEPP provider or PEPP distributor, as defined in the Notice of the Minister of Finance published in the Official Journal of the Republic;

"Regulation (EU) No. 2019/1238" means the European Union act titled "Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on the launching of a pan-European personal pension product (PEPP)";

"PEPP" means Pan-European Personal Pension Product as defined by Regulation (EU) 2019/1238;

(b) For the purposes of this Decree, terms not defined herein, unless the context otherwise requires, shall have the meaning given to them by Regulation (EU) No. 2019/1238.

(c) In this Decree and in the guidelines that the competent authorities may issue, any reference to a legislative act of the European Union, such as a Directive, Regulation or Decision, means that act as amended, modified or replaced from time to time, unless the context of this Decree otherwise requires.

(d) In this Decree and in the guidelines that the competent authorities may issue, any reference to a law or regulatory administrative act of the Republic means that law or regulatory administrative act as amended, modified or replaced from time to time, unless the context of this Decree otherwise requires.

3. The purpose of this Decree is to establish terms concerning the accumulation phase and the decumulation phase of national PEPP sub-accounts.

4. This Decree applies to all registered PEPPs in the Republic and to PEPPs with sub-accounts in the Republic.

ACCUMULATION PHASE

5. In the event that PEPP providers offer a portability service to PEPP savers, PEPP providers shall ensure that, when a new sub-account is opened in a PEPP account, it complies with the legal requirements and conditions of this Decree for the PEPP from the saver's new Member State of residence. All transactions in the PEPP account are recorded in a corresponding sub-account. Contributions paid to the sub-account and withdrawals from it may be subject to separate contractual terms.

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Age limit for the start of the accumulation phase.
Restriction on the age of entry.
Tax treatment of contributions.
118(I)/2002
230(I)/2002
162(I)/2003
195(I)/2004
92(I)/2005
113(I)/2006
80(I)/2007
138(I)/2007
32(I)/2009
45(I)/2009
74(I)/2009
110(I)/2009
41(I)/2010
133(I)/2010
116(I)/2011
197(I)/2011
102(I)/2012
188(I)/2012
19(I)/2013
26(I)/2013
27(I)/2013
17(I)/2014
115(I)/2014
134(I)/2014
170(I)/2014
116(I)/2015
187(I)/2015
212(I)/2015
110(I)/2016
135(I)/2016
119(I)/2017
134(I)/2017
165(I)/2018
51(I)/2018
96(I)/2018
122(I)/2018
139(I)/2018
27(I)/2019
28(I)/2019
63(I)/2019
151(I)/2019
152(I)/2019
173(I)/2019
45(I)/2020
58(I)/2020
66(I)/2020
80(I)/2020
95(I)/2020
151(I)/2020
179(I)/2020
180(I)/2020
31(I)/2021
178(I)/2021
193(I)/2021
31(I)/2022
77(I)/2022

6. The minimum age limit for the start of the accumulation phase in a PEPP is the 18th year.

7. No person may become a PEPP saver if their age is less than five (5) years from the age referred to in paragraph (1)(a) of Article 11.

8. Contributions paid to a PEPP in Cyprus are deductible from the taxable income of the PEPP saver in accordance with Article 14 of the Income Tax Law.

1334

89(I)/2022
101(I)/2022
112(I)/2022
121(I)/2022
122(I)/2022.

Taxation of Interest.
17(I)/2002
223(I)/2002
188(I)/2003
178(I)/2007
23(I)/2009
44(I)/2009
75(I)/2009
111(I)/2009
40(I)/2010
132(I)/2010
114(I)/2011
190(I)/2011
72(I)/2012
29(I)/2013
119(I)/2015
208(I)/2015
209(I)/2015
68(I)/2016
106(I)/2017
131(I)/2017
98(I)/2018
118(I)/2018
25(I)/2019
87(I)/2019
155(I)/2019
172(I)/2019
184(I)/2020
6(I)/2021
32(I)/2021
177(I)/2021
195(I)/2021
78(I)/2022.

9. The interest credited to approved PEPPs is taxed in the same manner as pension funds, in accordance with the provisions of paragraph 2(c)(iii) of Article 3 of the Emergency Contribution for the Defence of the Republic Law.

DECUMULATION PHASE

Retirement
Ages.
59(I)/2010
114(I)/2010
126(I)/2010
2(I)/2012
37(I)/2012
170(I)/2012
193(I)/2012
106(I)/2014
194(I)/2014
176(I)/2015
1(I)/2017
52(I)/2017
115(I)/2017
132(I)/2018
126(I)/2019
194(I)/2021
88(I)/2021
101(I)/202
168(I)/2021
44(I)/2022
81(I)/2022
150(I)/2022.

10. (1) The retirement age of the PEPP saver is the pensionable age in accordance with the provisions of paragraph (1) of Article 2 of the Social Insurance Law.

(2) The early retirement age is the age from which an insured person is entitled to receive an actuarially reduced pension under the Social Insurance Law.

1335

CORR. O.J.
Part I(I), No. 4727,
4.10.2019.

Conditions for payment of benefits.
Forms of PEPP
Benefits.
Modifications of payment forms.
Exemption from tax.

11. (1) The PEPP saver acquires the right to a pension benefit when the following conditions are met:-

(a) they have reached the retirement age, or

(b) they have reached the early retirement age and choose to receive an actuarially reduced pension under Article 35A of the Social Insurance Law,

(c) they have become permanently disabled for work, in accordance with the provisions of Article 40 of the Social Insurance Law, and receive a disability pension from the Social Insurance Fund.

(2) In the event of death during the accumulation phase, the pension benefit is paid to the legal heirs of the PEPP saver.

12. (1) The provider of a PEPP has the right to pay pension benefits in the following forms:-

(a) annual annuities,

(b) lump sums,

(c) periodic withdrawals, or

(d) combinations of the above forms.

(2) The PEPP saver chooses the form of payments for the decumulation phase at the time of concluding the PEPP contract and when requesting the opening of a new sub-account. The form of payments may differ from sub-account to sub-account.

(3) In the case of the choice of payment of the pension benefit by periodic withdrawals, the PEPP saver determines the frequency of the withdrawals and the amount of each withdrawal.

(4) In the case of annual annuities, which are linked to biometric risks, coverage is provided only through cooperation with insurance companies that can cover biometric risks, in accordance with the sectoral law applicable to them. The insurance company is fully responsible for the coverage of biometric risks.

(5) In the event of the death of the PEPP saver, any credit balance of their account at the date of their death is paid to their legal heirs. In the event that tax liabilities of the deceased arise, the PEPP retains the right to charge administrative expenses, if justified, for any administrative acts with the Tax Department.

13. (1) If the PEPP provider offers various forms of payment, the PEPP saver has the right to choose upon registration and to modify the form of payment of each open sub-account:

(a) one year before the start of the decumulation phase,

(b) at the start of the decumulation phase,

(c) at the time of changing PEPP.

(2) The modification of the payment form does not entail financial burden for the PEPP saver.

14. PEPP lump sums are included in the cases of exemption from income tax in accordance with paragraph (11) of Article 8 of the Income Tax Law.

ADONIS CHRISTOFI

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