The following funding plan was drawn up by the Board of Directors and ratified by the General Assembly in accordance with the Law of 27 October 2006 on the supervision of institutions for occupational retirement provision (hereinafter “IORP Law”) and the Royal Decree on the prudential supervision of institutions for occupational retirement provision (hereinafter “RD IORP”).
The organization is a multi-employer IORP managing pension commitments under non-rated defined contribution schemes and with optional biometric risk coverage, for two pension schemes, as provided in the articles of association :
By joining the organization and/or signing the agreement with the organization, the affiliated companies subscribe to the general section of this funding plan as well as to the specific sections applicable to the separate estates in which they are involved, and undertake to comply with the funding plan.
This version of the funding plan takes effect on the date of the organization’s approval as an institution for occupational retirement provision by the FSMA.
The organization determines the calculation method for the regular contributions paid to it by each affiliated company in order to ensure adequate funding of the promised commitments under each pension scheme and to cover the organization’s expenses.
The purpose of this funding plan is :
Each separate estate is funded on a regular basis to ensure sustainable compliance with the obligations.
With regard to pension commitments, the organization assesses the sustainability of the level of technical provisions at least every three years as part of its ORA (Own Risk Assessment) using a random continuity test, an ALM (Asset-Liability Management) study and/or an appropriate stress-testing model.
To promote operational efficiency, the organization encourages the implementation of SEPA or other types of direct debit payment arrangements at the same time the management agreement is entered into with an affiliated company, in order to collect contributions, premiums, taxes, and any other applicable charges relevant to the execution of pension commitment management and its funding.
These contributions may be called at a frequency (e.g., monthly, quarterly, annually) determined in consultation with the affiliated company.
Affiliated companies and, where applicable, members, are liable for applicable taxes and other contributions, which may vary from one pension scheme to another and may also depend on the specific situation of the affiliated company or the personal situation of the member.
Due taxes and social contributions are withheld by the organization at the time of each payment. They are also withheld at source by the organization upon disbursement of the pension capital and, where applicable, in the event of death, early exit, and/or transfer of reserves.
The contributions allocated to members are deposited in an account in their name.
In accordance with the organization’s policy on investment principles, these contributions are invested in units of index funds (trackers or ETFs) and potentially a small amount of cash.
These financial instruments generate returns that are fully credited to the member’s reserves, whether such returns are positive or negative.
The insurance premiums paid to Belfius Insurance SA (hereinafter, “Belfius”) to provide coverage for death, incapacity, or other potential biometric risks are financed by the members’ accrued reserves.
Specifically, the organization reinsures all biometric risks with Belfius.
The organization reserves the right to charge a commission on these premiums in accordance with its pricing policy.
The organization informs the affiliated company and the member of the cost of these premiums, issues a quote and invoices detailing the premiums, level of coverage, any applicable taxes, and required medical examinations.
In the event of non-financing, the member loses these coverages. In such a case, and within a reasonable prior notice period, the organization informs the affiliated company and the member.
In accordance with its pricing policy, the organization deducts monthly management fees proportional to the value of the members’ account reserves in order to cover all types of costs, including in particular :
In addition, where applicable, the organization deducts, at the frequency agreed with the affiliated company and reinsurer, the premiums related to biometric insurance payments.
As part of its risk management policy, the Board of Directors has identified and measured the risks relating to funding and has determined how to manage and monitor them.
These risks were taken into account in the development of the funding plan (general and specific sections).
The Board of Directors refers in this respect to its risk management policy note and to the ORA (Own Risk Assessment) reports that will be prepared.
The funding plan, both the general section and the specific sections, is evaluated and, where applicable, reviewed at least every three (3) years and, in the interim, upon any significant change potentially affecting the general funding principles applicable to all separate estates and, for each specific section, upon any change in the separate estate potentially impacting the funding policy at the level of the separate estate and its risk profile and policy.
Within one month of its ratification by the General Assembly, the revised general section and/or revised specific sections of the separate estate are submitted to the FSMA.
This funding plan was approved by the organization’s Board of Directors on 28 June 2024 and ratified by the General Assembly on 28 June 2024.
Affiliated companies accept the terms of this funding plan when entering into a relationship with the organization. This funding plan is part of the pre-contractual conditions attached to the pension plan offer proposed to the affiliated company, which the affiliated company must sign before implementing its plan.
This is the separate estate reserved for pension schemes for directors of affiliated companies.
It is a defined contribution pension commitment without a guaranteed return.
The pension age is the statutory retirement age. This pension age is generally 65 years until 31 January 2025, 66 years from February 1st 2025 to January 31st 2030, and 67 years from February 1st 2030 onwards.
Capitalization is effective :
Unless otherwise agreed and subject to tax and social security rules, periodic contributions are due on the dates indicated at the time of the member’s affiliation, from the effective date of the individual pension commitment and, at the latest, until its end or the member’s death. One-off contributions may also be paid during the contract period, in accordance with tax and social security rules. Contributions are paid to Easyvest OFP and may be increased by applicable taxes.
These contributions are invested in accordance with the policy on investment principles.
Successive contributions are invested year after year. At retirement, the organization liquidates the investments and, after deduction of any taxes due, pays the remaining balance (the pension capital) to the company director.
Easyvest OFP does not constitute a solvency margin for this scheme.
In the event of the member’s death before retirement, his or her beneficiary(ies), as defined in the pension regulation, will receive the benefit defined in the EIP contract.
Assets related to individual pension commitments for company directors are held in a separate estate called Separate Estate EIP.
The assets of the Separate Estate EIP consist of the total of the individual accounts of members, funded through contributions collected from their affiliated companies.
The individual accounts of members consist of contributions intended to finance individual pension entitlements.
Amounts recorded in the members’ individual accounts consist of :
The technical provisions are calculated in accordance with the rules set out in Article 18 of the Royal Decree IORP and are equal to the sum, for all members, of their vested reserves as defined in the pension commitment.
The asset valuation method is set out in the policy on investment principles.
This is the separate estate reserved for multi-employer defined contribution pension schemes, without tariff, but with biometric risk coverage for salaried employees of affiliated companies.
Collective pension plans (CPP) for salaried workers (employees or laborers) are subject to a statutory return guarantee on the contributions made by the employer to the employee (equivalent to 1.75% per year in 2022). This guarantee is provided by the affiliated company to its employee. Therefore, it is not the organization that provides this guarantee.
The pension age is the statutory retirement age. This pension age is generally 65 years until 31 January 2025, 66 years from February 1st 2025 to January 31st 2030, and 67 years from February 1st 2030 onwards.
Capitalization is effective :
At the start of employment and/or upon affiliation, the affiliated company determines the amount, frequency, and due dates for the contributions it pays on behalf of the member, in compliance with tax and social security regulations. These contributions may be increased by the applicable taxes.
During the member’s employment period within the affiliated company, these contributions may evolve in accordance with the employment agreement between the employee and the employer. The affiliated company informs the organization of these changes, and the resulting contributions are treated in the same way as explained above.
These contributions are invested in accordance with the policy on investment principles.
Successive contributions are invested year after year. At retirement, the organization liquidates the investments and, after deduction of any taxes due, returns the remaining balance (the pension capital) to the employee.
In the event of the member’s death before retirement, his or her beneficiary(ies), as defined in the pension regulation, will receive the benefit defined in the CPP regulation.
Assets related to pension commitments for employees are held in a separate estate called Separate Estate CPP.
The assets of the Separate Estate CPP consist of the total of the individual accounts of members, built from contributions collected from their employers.
The individual accounts of members consist of contributions intended to finance individual pension entitlements.
Amounts recorded in the members’ individual accounts consist of :
The technical provisions are calculated in accordance with the rules set out in Article 18 of the Royal Decree IORP and are equal to the sum, for all members, of their vested reserves as defined in the pension commitment.
In accordance with Article 24, §2 of the LPC, the amount of the statutory return guarantee is calculated by capitalizing the contributions, after deducting a fixed cost portion of 5%, at an interest rate set by Royal Decree. In 2022, this interest rate was 1.75% per annum. Regarding how the return guarantee fluctuates under Article 24 LPC, the organization applies the method defined in the LPC as the “vertical” method.
Each year, the organization informs the Affiliated Company of the amount of the statutory guarantee and the accrued reserve of each Member. This information is provided by February 28 at the latest, with reference to amounts as of December 31 of the previous year.
Upon exit, the Member is entitled to the amount of the statutory guarantee as outlined above. If, at the time of exit, the Member’s accrued reserve is less than the guaranteed amount, the Affiliated Company must settle the difference, in accordance with the terms set out in the agreement between the organization and the Affiliated Company.