TOMORR W S BELGIAN PENS ON. DANIEL BACQUELAINE, Minister for Pensions

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1 TOMORR W S BELGIAN PENS ON

2 Sources: NPO Sigedis, SdPSP; Annual report of the NPO; OECD «Effective exit age from the labour market» in Pensions at a glance Indicators in OECD and G20 Countries, statistics OECD, data of 2013 on the labour market by gender and age, consulted on the 21/01/2015 AVERAGE EXIT AGE FROM THE LABOUR MARKET In Belgium <10% of the labour force works until the age of 65 64,2 years Employment rate age group ,31% 59,6 years 63,6 years 58,7 years Employment rate 23,75 age group %

3 LEGAL AGE Age légal OECD «Raising the legal retirement age in order to improve long term sustainability» 65 years 66 years 67 years

4 PARTIAL PENSION

5 POINTS-BASED PENSION SOLIDARITY Socioeconomic conjuncture Average income of a specific sector PENSION = AMOUNT OF POINTS POINT S VALUE Valued efforts Performed career INDIVIDUAL RESPONSABILIT Y

6 HARMONISATION August 1st 2016 Minimal pension amount for a full career PENSION INDEPENDEN T WORKERS = PENSION SALARIED WORKER Family pension Single person Independent workers Salaried workers

7 Sources: OECD (2015), pensions replacement rate doi: /e fr (consulted on the 28th of october 2015) REPLACEMENT RATE (net) %

8 3 PILLARS Legal pension Supplementary pension Retirement saving Long term saving

9 SOCIAL COMPONENT OF THE LAW ON SUPPLEMENTARY PENSIONS Organise r Company: Employer Makes a pension commitment on behalf of the workers Business sector: Sector/(sub) joint committee Managed by a pension organism Institutions for Occupational Insurers Retirement Provision (pension fund)

10 PENSION ORGANISM Choice of organism, if applicable, with prior consultation of the collaborative body of the company Insurers 50 billion 24 insurers in BE Obligation of result IORP billion 208 IORPs in BE Obligation of means Mainly Exclusively 2,8 million affiliated workers Sources :ABIP, 2013

11 Sources :OECD (2015), assets of pension funds 2013(. doi: /0bad94ee-fr (consulted on the 2 nd of November 2015) WEIGHT OF THE PENSION FONDS %GDP The Neterlands 160,6 The UK 105,8 Irland 55,8 Finland 50,8 Spain 9 Germany 6,2 Italy 6,1 Belgium 5,2 Luxembourg 2,1 France 0,4 Greece 0,

12 PAN-EUROPEAN PENSION FUNDS Central geographical location Legal form (OFP): governance flexibility and fiscal interest Conventions to avoid double taxation Experience in cross-border pension funds 11 pan-european pension funds in Belgium!

13 2 nd PILLAR Democratisation of the supplementary pensions Pensions PSPS PSPS Civil servant Salaried worker Self-employed Business employer Self-employed Natural person

14 SUPPLEMENTARY PENSION Benefits and limitations = Business owners PSPS PSPS Business owner Natural person

15 THE PRIVATE SUPPLEMENTARY PENSION

16 INTERPROFESSIONAL NEGOCIATIONS: GOAL = 3% Determine the % of salary raise Social partners Payment of contributions in the supplementary pension plan Contribution level of minimum 3% of the salary

17 FURTHER MEASURES Transitional Measures When taking the legal pension or at the legal age Transitional Measures Prohibition of favourable anticipatory measures in pension plans

18 Conclusion efforts valorisés

19 OBJECTIVES Ensure social protection Ensure our children s pensions Preserve future generations

20 HOW? Works on 3 pilars Legal Pension Supplementary Pension Retirement saving Long term saving Balance of risks

21 Thank you for your attention!

22 TOMORR W S BELGIAN PENS ON