When an insured is the beneficiary of an accident pension with a rate that is unlikely to change, it can be repurchased by a payment in capital.
Who is concernedAnyone who receives an accident pension as compensation for an accident or occupational disease that occurred before 1 January 2011.
Life pensions below 20 % can be repurchased on request, without any obligation to justify the use of the paid-up capital.
To be granted the repurchase of a life annuity with a rate between 21 % and 39 %, the insured must prove that he intends to use the capital for a real estate acquisition or for paying off a mortgage.In addition, the deputy mayors of the commune where the insured resides are invited to come forward within 30 days to decide on the advisability of the repurchase. The repurchase cannot take place before the expiry of this period, except if the deputy mayors have expressly agreed to it.
How to proceed
Repurchase of the pension
The board of directors of the Accident Insurance Association may, at the request of the insured, grant the repurchase of pensions lower than 40 %.
A pension whose disability rate is less than 10 % is automatically redeemed by the single payment of a fixed capital based on the amount of the pension and the age of the insured.
The insured can request the repurchase of his pension:
- if the disability rate is between 10 and 20 %: the pension is redeemed at the request of the beneficiary, except in the event of opposition from the deputy mayors of the commune where he
- if the disability rate is between 21 and 39 %: the pension can only be purchased with the agreement of the board of directors. It is up to the insured to justify the use of the capital to be paid.
Capitalisation is not possible if the beneficiary is a minor.
It should be noted that in the event of successive accidents, all permanent partial disability rates will be taken into account in granting the buy-out.
The payment of the lump-sum amount extinguishes the beneficiary's rights with regard to the AAA. However, in case of a further deterioration of their health of at least 10 %, the insured can make an aggravation claim.
Calculation and capitalisation of the pension
The capital sum is obtained by multiplying the monthly pension due at the time of the repurchase by 12 and by the capitalization factor applicable at the time of the repurchase.
Accident pensions are calculated on the basis of the insured's taxable income. The purchase of the pension can only be requested if the taxable income has been definitively declared to the Joint Social Security Center (Centre commun de la sécurité sociale - CCSS).
The capitalization factors used can be found in the Grand-Ducal Regulation of 9 March 2017. The factor applicable for the calculation is chosen according to the age of the insured at the time of the repurchase.
Refusal of repurchase
The board of directors has the right to refuse an application for repurchase of a life annuity if such a purchase is contrary to the economic interests of the insured or if the deputy mayors of the municipality where the insured resides have expressed their opposition at the repurchase.
A refusal issued by the board of directors must be reasoned and may be appealed.
Interested parties have several means of appeal at their disposal to assert their rights.
Forms / Online services
Demande de rachat d'une rente accident viagère (accidents survenus ou maladies professionnelles déclarées jusqu'au 31.12.2010)
Antrag auf Auszahlung einer Dauerrente (Arbeitsunfälle, die sich bis zum 31.12.2010 ereignet haben, oder Berufskrankheiten, die bis zum 31.12.2010 gemeldet wurden)
Informations relatives à la demande de rachat d’une rente viagère (accidents survenus ou maladies professionnelles déclarées jusqu'au 31.12.2010)
Hinweise zum Antrag auf Auszahlung einer Dauerrente (Arbeitsunfälle, die sich bis zum 31.12.2010 ereignet haben, oder Berufskrankheiten, die bis zum 31.12.2010 gemeldet wurden)