Self-employed retirement and debts with Social Security
Posted: Tue Dec 17, 2024 4:55 am
The moment when the self-employed person decides to retire does not only depend on having reached the required age. There are many other factors such as the time worked, the amount of the pension to which one is entitled or the need or convenience of maintaining the business activity.
But it is also important to take into account what happens with the self-employed person's retirement and the debts with Social Security that he or she may have at the time he or she wants to become a pensioner.
It is necessary to be up to date to qualify for the pension
It is an essential bosnia and herzegovina email list requirement to be eligible to receive a retirement pension to be up to date with the payment of Social Security contributions . Therefore, in the event of owing any amount corresponding to RETA contributions, the self-employed person will not be able to collect the pension until this situation is resolved.
If it is not possible to pay the outstanding contributions, the best solution is to agree to pay them in instalments before applying for retirement. Once the TGSS grants this payment in instalments, we can apply for retirement and collect, always bearing in mind that failure to pay some of the outstanding contributions, which we will obviously have to continue paying, may mean the withdrawal of this pension.
In some cases, if the administration has declared the debtor as uncollectible and the debt is not payable, the period corresponding to that debt will be considered as non-contributed , so it will be discounted for the purposes of calculating the time contributed, which could have effects on the right to or the amount of the pension.
What happens if the self-employed person is up to date with his RETA contributions and has debts for the contributions of his employees? If the self-employed person is a corporate employee and the debt is owed by the company, this has no impact , except for a possible derivation of liability.
In the case of a self-employed entrepreneur, until now the existence of any type of debt was grounds for denial of the right to a pension. However, a recent ruling by the Supreme Court ( PDF ) has turned this situation around .
According to the ruling, which sets a precedent, the requirement for recognising the benefit cannot include the payment of obligations other than those related to the contributions of the worker who is the beneficiary of that benefit.
Therefore, the existence of debts arising from the contributions of workers would not be a reason for denying the retirement pension, provided that the RETA is up to date. Although, logically, the self-employed person is obliged to pay these outstanding amounts.
But it is also important to take into account what happens with the self-employed person's retirement and the debts with Social Security that he or she may have at the time he or she wants to become a pensioner.
It is necessary to be up to date to qualify for the pension
It is an essential bosnia and herzegovina email list requirement to be eligible to receive a retirement pension to be up to date with the payment of Social Security contributions . Therefore, in the event of owing any amount corresponding to RETA contributions, the self-employed person will not be able to collect the pension until this situation is resolved.
If it is not possible to pay the outstanding contributions, the best solution is to agree to pay them in instalments before applying for retirement. Once the TGSS grants this payment in instalments, we can apply for retirement and collect, always bearing in mind that failure to pay some of the outstanding contributions, which we will obviously have to continue paying, may mean the withdrawal of this pension.
In some cases, if the administration has declared the debtor as uncollectible and the debt is not payable, the period corresponding to that debt will be considered as non-contributed , so it will be discounted for the purposes of calculating the time contributed, which could have effects on the right to or the amount of the pension.
What happens if the self-employed person is up to date with his RETA contributions and has debts for the contributions of his employees? If the self-employed person is a corporate employee and the debt is owed by the company, this has no impact , except for a possible derivation of liability.
In the case of a self-employed entrepreneur, until now the existence of any type of debt was grounds for denial of the right to a pension. However, a recent ruling by the Supreme Court ( PDF ) has turned this situation around .
According to the ruling, which sets a precedent, the requirement for recognising the benefit cannot include the payment of obligations other than those related to the contributions of the worker who is the beneficiary of that benefit.
Therefore, the existence of debts arising from the contributions of workers would not be a reason for denying the retirement pension, provided that the RETA is up to date. Although, logically, the self-employed person is obliged to pay these outstanding amounts.