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A consultant sought clarification on when the retirement contingency is deemed to have occurred for the purpose of applying a 40% reduction to their pension plan, given they were alternating between active retirement and employment. The Directorate-General for Tax (DGT) ruled that, if pension plan benefits are not drawn during active retirement, the contingency occurs when the right to receive full Social Security pension payments is reinstated.
The tax team reviews your specific situation.
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