Scientists and research staff from abroad at the University of Copenhagen may be able to look forward to lower tax rates on their pension, and an immediate pension payout on their leaving Copenhagen.<\/p>\n
This is according to the International Staff Mobility Office (ISM) at the University of Copenhagen that is lobbying for the change with pension funds and tax authorities.<\/p>\n
Under the present rules, a large portion of PhDs\u2019 and postdocs\u2019 salaries are withheld in their pension schemes: However, at time of payout \u2013 many years later \u2013 some are unable to be reached by pension funds, while others simply forget that they had the pension funds available at all.<\/p>\n
\u00bbThe new element will be that pensions will be taxed immediately, and that they can be paid out\u00ab explains Vivian Tos Lindgaard, head of the International Staff Mobility Office.<\/p>\n
\u00bbAs a mobile international scientist, you can end up having pensions in different countries, with the risk that some of these funds are misplaced at the end of a career,\u00ab she explains.<\/p>\n
The new payout option for PhDs and postdocs will not be obligatory, and they may opt to retain their pension in the fund for later payout on retirement.<\/p>\n
Under current rules, pensions are taxed at 60 per cent per cent on retirement. Under the new regulations, the pensions will also be taxed more leniently: for PhD\u2019s typically at around 37 per cent, the rate which most international researchers are subject to on their salaried income.<\/p>\n
There are two main reasons why international researchers are subjected to lower tax rates than Danish researchers: First, international researchers disproportionately pay for welfare services that they didn\u2019t use as a child and which they are less likely to use later as a pensioner if they move on. Second, government policy is to attract foreign talent that otherwise would be scared away by high Danish income taxes.<\/p>\n
Vivian Tos Lindgaard hopes that the new rules will be in place this summer with Unipension, which is the consolidated administration of three funds (AP, MP and PJD) offered to University of Copenhagen scientists and staff. Other universities are likely to follow the University of Copenhagen\u2019s example.<\/p>\n
\u00bbPension funds have shown a greater understanding for the fact that they have to offer better service to internationals,\u00ab Vivian Tos Lindgaard says.<\/p>\n
miy@adm.ku.dk<\/p>\n