Request to redeem EPSVs due to COVID-19

Royal Decree 463/2020 contains exceptional liquidity conditions, for both pension plans and EPSVs, as a result of the situation created by COVID-19.
Currently, the measures for EPSVs are still in effect. If you have one of these pension products at BBVA and you meet the conditions, you can cash them in early.

EPSVs

The Resolution of March 25, 2020, of the Director of Financial Policy of the Basque Government, authorizes Voluntary Pension Entities (EPSV) with defined contribution plans that are entitled to an unemployment benefit, to pay benefits to those account holders who are affected by a furlough or layoff as a result of the healthcare crisis caused by COVID-19, even if the requirements laid out in the EPSV Law and the EPSV Regulation are not met.

Which holders can request this new exceptional liquidity event?

  • Employees who are legally unemployed due to being laid off or furloughed.
  • Self-employed workers who have sustained losses or stopped their activity.

As long as these situations (unemployment, closure or stoppage of activity) are due to the health crisis caused by COVID-19.

What is the period covered by this new exceptional event?

  • From the day on which the holder is affected by the layoff or furlough.
  • Until the date on which the layoffs or furlough end.

When are the vested benefits paid?

The payments will be made within five business days from the date on which the holder presents all the supporting documentation detailed below.

What tax implications does this new exceptional liquidity event have?

As with all other contingencies and exceptional liquidity events, the amounts collected in this new event will be subject to the same tax regime as EPSV benefits.

The vested rights in the affected products may be redeemed at the member's request when any of the contingencies or exceptional liquidity cases exist.

If you are affected by one of the situations described and are interested in requesting a redemption, please contact your adviser, who will make the necessary arrangements.

EPSV benefits due to layoffs

1. Employees:

Documentation:

  • Copy of the applicant's national ID document (both sides).
  • Application properly filled out and signed by the holder, indicating the holder's account to be credited.
  • Document proving that the applicant is affected by temporary or permanent layoffs resulting from the exceptional situation caused by the COVID-19 health crisis.
  • Proof of payment of unemployment benefits from the Spanish Public Employment Service (SEPE).
  • Last full pay stub before becoming unemployed.

Frequency and amounts receivable:

  • The holder has to certify, every month for as long as they are unemployed, that they are indeed unemployed by presenting the document specified earlier.
  • If furloughed:
    • It will consist of a monthly income.
    • The income will be equal to the difference between 100% of the regulatory base used to calculate the unemployment benefit and the percentage of the regulatory base that the worker receives as a result of the furlough.

(That is, the regulation seeks to ensure that the holder receives a total of 100% of the unemployment benefit paid by the SEPE and the unemployment benefit obtained from the EPSV.)

  • If laid off:
    • It will consist of a monthly income.
    • Subject to the same conditions as the unemployment benefit regulated in the EPSV Law and Regulation.

2. Self-employed workers:

Documentation:

  • Copy of the applicant's national ID document (both sides).
  • Application properly filled out and signed by the holder, indicating the holder's account to be credited.
  • Document certifying that the activity was stopped as a result of the exceptional situation caused by the COVID-19 health crisis.
  • Document certifying eligibility to receive unemployment benefits.
  • Last annual tax return available (Form 100) and, where applicable, the partial payment of Personal Income Tax (Forms 130 or 131) or VAT self-assessment for the last quarter (Form 303).
Frequency and amounts receivable:
  • The holder has to certify, every month for as long as they are unemployed, that they are indeed unemployed by presenting the document specified earlier.
  • Same as in the case of furloughed employees.