Individual pension information : Belgium. Henk Becquaert 25/11/2010

Transcription

1 Individual pension information : Belgium Henk Becquaert 25/11/2010

2 Pensions in Belgium Civil servants Private sector employees Self-employed workers 3dpill 3rd pillar Individual life insurance + Pension savings contracts 2nd pillar Occupational pension schemes: company industry-wide individual savings contracts company-sponsored arrangements for selfemployed managers 1st pillar Final salary DB Average salary DB Average salary DB 2

3 Individual information "Inter-generational pact" (2005) General objective : integrated information provision on individual pension rights Upon request as well as automatically Both statutory and supplementary pensions 3

4 First pillar : objectives At age 55 : automatic report on : career overview pension estimate + 55 : the same upon request (maximum every two years) Integrated and online accessible career dossier For "mixed career" (private sector/self-employed/civil service) : complete career overview and overall estimate Cooperation among the various services involved 4

5 First pillar : self-employed workers Automatic pension estimate and career overview at age 55 Thereafter upon request Creation of a career database 5

6 First pillar : private sector workers Automatic pension estimate and career overview at age 55 Thereafter upon request "MyPension": P i " online pension dossier career overview + acquired pension rights (no estimate) At any age 6

7 First pillar : Civil servants For now only upon request after age 55 Specific problems : many different regimes no integrated career dossier managed by the individual employers transferred to Public Service Pension Service (PDOS-SdPSP) SdPSP) only upon retirement Need for integrated electronic career management 7

8 First pillar : state of the question Important progress within the various systems No integrated information yet for the first pillar : within systems (self employed, civil servants) between systems (mixed careers) Online simulation tool (all data to be entered by the pension holder him/herself) 8

9 Second pillar : benefit statement Annual and automatic Contents vested rights transfer value ("vested reserve") transfer value previous year financing level Total contributions paid Profit sharing Charges Interest rate Active scheme members + deferred d beneficiaries i i + for selfemployed 9

10 Second pillar "Historical" pension information sheet: upon request Pension estimate every 5 years from age 45 gross pension benefit at retirement "Exit sheet" vested rights + transfer value transfer options do survivor benefits e continue? As from 2010 : benefit statement + estimate also upon request 10

11 Second pillar : challenges Comprehensible information : not just for lawyers and actuaries! pertinent t information : survivor benefits? net amounts? Comparable information IORP/insurer type of plan (DB/DC)... Integrated information? (cf. inter-generational pact) 11

12 Second pillar : towards a (more) uniform benefit statement CBFA can impose a standardized presentation format Coming soon : CBFA communication Uniform cover sheet in plain language Estimate for complete career Vested right Transfer value Survivor benefits Annex to be filled in as preferred, taking into account the nature of the pension commitment and the type of pension institution Recommendation : not obligatory for now 12

13 Second pillar : toward an integrated information provision? DB2P : centralization of all individual data and pension plan information for the second pillar First reports in 2011 Organizers can mandate SIGeDIS to take charge of preparing benefit statements Integrated information provision is (for now) not an explicit objective 13

14 To do Individual information for pension savings contracts (third pillar) Integrated information for all pillars Estimates should show impact of decisions regarding : career interruptions/part time employment retirement age 14