BELGIAN ASSOCIATION OF PENSION FUNDS

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BELGIAN ASSOCIATION OF PENSION FUNDS

• COUNTRY REPORT
• BELGIUM

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A / Structure of Belgian Retirement Provisions

• 1st pillar PAYG legal pensions
• 2nd pillar supplementary, collectivegroup
  insurance pension funds
• 3th pillar long term savings, individual

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A/ Structure of Belgian retirement provisions
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B/ Developments (1)

• Political context positive signals
• PF established within CBA exempt from
  competitiveness law
• Collective pension schemes based on
  capitalisation should be stimulated

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B/ Developments (2)

• Legal framework
• Control legislation 1999 gt broadening of
  investment rules revision of technical
  parameters
• Multi campany PF RD shortly due, will allow for
  smaller companies to jointly set up PF

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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

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B/ Developments (4)

• Legal framework (3)
• Europe progress towards directive
• Important for ABPF
• Freedom of investment prudent expert
• Security gt seperation of assets of PF and
  sponsor
• Level playing field gt fiscal treatment

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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

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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

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C/ Statistics (3)

• Asset mix
• Bonds decline
• Stock up gt volume price effect
• Real estate /- 5

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C/ Statistics (4)

• Return
• 1998 17.2

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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 gt concept
  2000
• Compilation of legal / fiscal dispositions,
  guidebook for establishing PF

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E/ Outlooks

• Belgium
• Multi company PF
• Government plans for adaptation of 2nd pillar
• Europe
• Cost effect of new regulation?
• Level playing field?