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BELGIAN ASSOCIATION OF PENSION FUNDS

BELGIAN ASSOCIATION OF PENSION FUNDS. COUNTRY REPORT BELGIUM. A / Structure of Belgian Retirement Provisions. 1 st pillar: PAYG legal pensions 2 nd pillar: supplementary, collective group insurance + pension funds 3th pillar: long term savings, individual.

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BELGIAN ASSOCIATION OF PENSION FUNDS

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  1. BELGIAN ASSOCIATION OF PENSION FUNDS COUNTRY REPORT BELGIUM EFRP MEETING MADRID 4 - 2000

  2. A / Structure of Belgian Retirement Provisions • 1st pillar: PAYG legal pensions • 2nd pillar: supplementary, collectivegroup insurance + pension funds • 3th pillar: long term savings, individual EFRP MEETING MADRID 4 - 2000

  3. A/ Structure of Belgian retirement provisions EFRP MEETING MADRID 4 - 2000

  4. B/ Developments (1) • Political context = positive signals • PF established within CBA exempt from competitiveness law • Collective pension schemes based on capitalisation should be stimulated EFRP MEETING MADRID 4 - 2000

  5. B/ Developments (2) • Legal framework • Control legislation: 1999 => broadening of investment rules + revision of technical parameters • Multi campany PF: RD shortly due, will allow for smaller companies to jointly set up PF EFRP MEETING MADRID 4 - 2000

  6. B/ Developments (3) • Legal framework (2) • CDV/OCA: reporting of PF in line with euro-environment and changes to technical parameters and new investment framework EFRP MEETING MADRID 4 - 2000

  7. B/ Developments (4) • Legal framework (3) • Europe: progress towards directive • Important for ABPF • Freedom of investment + “prudent expert” • Security => seperation of assets of PF and sponsor • Level playing field => fiscal treatment EFRP MEETING MADRID 4 - 2000

  8. C/ Statistics (1) • CONTRIBUTIONS (bill.euro) • Pillar 1 = payments in PAYG system • 62% private sector • 28% public sector • 9% self employed • Pillar 2 • 74% group insurance • 26% pension funds • Pillar 3 • 87% life insurance • 13% pension savings EFRP MEETING MADRID 4 - 2000

  9. C/ Statistics (2) • RESERVES (bill.euro) • Pillar 1 n.a. • Pillar 2 • 68% group insurance • 32% pension funds • Pillar 3 • 80% life insurance • 20% pension savings EFRP MEETING MADRID 4 - 2000

  10. C/ Statistics (3) • Asset mix • Bonds: decline • Stock: up => volume + price effect • Real estate: +/- 5% EFRP MEETING MADRID 4 - 2000

  11. C/ Statistics (4) • Return • 1998: 17.2% EFRP MEETING MADRID 4 - 2000

  12. D/ Concerns + activities BAPF • Difficult environment • Complex regulation “appendix” of insurance companies • Legal / fiscal requirements abundant and untransparent • Different types of institutions in pillar 2 • Need for distinct regulatory framework => concept 2000 • Compilation of legal / fiscal dispositions, guidebook for establishing PF EFRP MEETING MADRID 4 - 2000

  13. E/ Outlooks • Belgium • Multi company PF • Government plans for adaptation of 2nd pillar • Europe • Cost effect of new regulation? • Level playing field? EFRP MEETING MADRID 4 - 2000

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