2. EFRP MEETING - 20011 BELGIAN ASSOCIATION OF PENSION FUNDS COUNTRY REPORT BELGIUM

3. EFRP MEETING - 20012 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

4. EFRP MEETING - 20013 A/ Structure of Belgian retirement provisions

5. EFRP MEETING - 20014 B/ Developments (1)  Political context : growing awareness of impact on social security of demographic evolution and the need for action  “zilverfonds”  reform of 2nd pillar

6. EFRP MEETING - 20015 B/ Developments (2)  “zilverfonds”  rescue of 1st pillar pensions?  gradually funded up to 120 bn EUR by 2030  non-fiscal financing  also considerations of debt management

7. EFRP MEETING - 20016 B/ Developments (3)  reform of 2nd pillar  facilitating access to complementary pensions for larger part of population  complementary pension = complementary social protection

8. EFRP MEETING - 20017 B/ Developments (4)  reform of 2nd pillar  “sectorschemes” in key role  organise “solidarity”  set up by CBA  minimum return for DC-plans

9. EFRP MEETING - 20018 B/ Developments (5) Legal framework  Royal Decree 7 may 2000: Control legislation finalised  Multi campany PF: final RD still pending, will allow for smaller companies (not belonging to sector) to jointly set up PF  Law proposal “reform 2 nd pillar” shortly before parlement

10. EFRP MEETING - 20019 C/ Statistics (1) 1998 Contributions (bill.euro)  Pillar 1 = payments in PAYG system  62% private sector  29% public sector  9% self employed  Pillar 2  79% group insurance  21% pension funds  Pillar 3  92% life insurance  8% pension savings

11. EFRP MEETING - 200110 C/ Statistics (2) 1998 Reserves (bill.euro)  Pillar 1 est.  Pillar 2  68% group insurance  32% pension funds  Pillar 3  74% life insurance  26% pension savings

12. EFRP MEETING - 200111 C/ Statistics (3) 1999 Asset mix  Bonds: decline  Stock:  strong increase  in ‘99 for the first time > 50% of assets  Real estate: +/- 5%

13. EFRP MEETING - 200112 C/ Statistics (4) 1999: Average annual return over period of x years

14. EFRP MEETING - 200113 D/ Concerns of BAPF (1)  Need for distinct regulatory framework, no longer “appendix” of insurance companies  True “level playing field”  Multi company PF legislation  fiscal reform  Law proposal “reform 2 nd pillar” shortly before parlement.

15. EFRP MEETING - 200114 D/ Concerns of BAPF (2) Law proposal “reform 2 nd pillar” shortly before parlement. Many concepts still have to be specified:  “guaranteed return”in DC-plans  what will be the actuarial impact?  content of guarantee?

16. EFRP MEETING - 200115 D/ Concerns of BAPF (3) Law proposal “reform 2 nd pillar” shortly before parlement. Many concepts still have to be specified:  Concept of “solidarity”  what does it mean?  Interest versus capital  Interest payment is always an option.  minimum level for conversion?  Concept of “transparancy” => mandatory information => “red tape” ??