Law on Complementary Pensions (LCP) - AG Employee Benefits
Law on Complementary Pensions (LCP) New transparency requirements

Published on 03/02/2023

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Law on Complementary Pensions (LCP)

​​​New transparency requirements​​​

On 2 February 2023, the "Law of 26 December 2022 amending various provisions to enhance transparency under the second pension pillar", known as the Transparancy Law, was published in the Belgian Official Gazette.​ We then immediately communicated an overview of the main points of this law in this article.

On 22 December 2023, the law containing various provisions on pensions was published in the Belgian Official Gazette. Among other things, this law provides for a deferred entry into force for several provisions of the Transparancy Law. This 'update' to the Transparency Law has since been included in this article.​

Why a Transparancy Law?
T
he purpose of this new Law is to clarify and improve information on supplementary pensions:

  • Identical rules for all pension institutions
    Information requirements that until recently applied only to pension funds (based on IORP II) will now also apply to insurers. All plan participants are now entitled to the same information. 
  • Content-related improvements
    Clear, high-quality and relevant information will provide plan participants with a better understanding of their future supplementary pension entitlements.

The changes will be incorporated in the applicable legislation, notably the Law on Complementary Pensions and the Law on Complementary Pensions for Company Directors.

Key changes

Pension Benefit Statement 

Under the new Law, the updated Pension Benefits Statement, which will be drawn up by Sigedis, will be given a new name: “pensioenoverzicht" instead of “pensioenfiche" in Dutch and “relevé des droits à retraite" instead of “fiche de pension" in French. There are also several substantive changes. For example, the Pension Benefit Statement will contain various pension benefit projections if economic scenarios can have an impact on the result. It will also specify the costs over the past 12 months (insofar as they impact plan participant entitlements) and include contact details for questions and complaints.

Enrolment form and transparency report

The enrolment form will inform new and prospective participants about all of their options, such as payout options and the choice between different death benefit covers. It will also inform them about the relevant features of the pension promise and whether/how the investment strategy takes environmental, climate, social and corporate governance (ESG) factors into account. Plan participants and sponsors will be able to consult the transparency report at any time without having to request access. 

Information and payout upon retirement 

As a pension institution, we are required to inform plan participants about their supplementary pension at least 60 days prior to their retirement, unless we have not received the information from Sigedis by then. 

The supplementary pension benefits must be paid out within 30 days of retirement (or within 30 days of receiving all of the necessary information, whichever is later). 
Transitional measures will apply to sector-wide plans: until 1 January 2027, the timeframe can be extended by six months if necessary for the correct calculation of entitlements. 

Today, AG sends out a letter to your employees to notify them. In addition, they can quickly and easily request payment of their supplementary pension online via the Digital Pension Settlement (DPS) feature on the MyAG Employee Benefits-platform. 

Information and payout in the event of death

The Law also specifies several time limits in the event of death. As a pension institution, we have 30 days to locate and write to the beneficiary(ies) as soon as we become aware of the death. We are also required to pay out the plan benefits within 30 days of receiving all of the necessary information. This is, of course, something that we have always endeavoured to do as soon as possible.

A (final) pension statement for interim events
(additional obligation provided for in the law containing various provisions on pensions published in the Belgian Official Gazette on 22-12-2023)

In the event of interim occurrences such as retirement or reserve transfer​, the law provides for additional communication with a pension statement as well as the current account for the period between the situation on 1 January of that year and the relevant event.

​Making the affiliation document and transparency report available via mypension.be
(additional obligation provided for in the law containing various provisions on pensions published in the Belgian Official Gazette on 22-12-2023)

The Financial Services and Markets Authority (FSMA) must develop a template for the affiliation document by 30 June 2024 and following advice from the Commissions for Complementary Pensions for Employees and the Self-Employed that is as close as possible to the new pension statement in terms of content and layout.

Elimination of certain requirements for you as an employer (sponsor)

The new Law also establishes a number of administrative simplifications. For example, you are no longer required to:

  • notify the FSMA of the number of Individual Pension Plans every year.
  • inform plan participants of their right to convert their lump-sum benefits into an annuity.
  • notify the FSMA of any change in pension institution and the subsequent transfer of reserves.
  • ask the Works Council for its opinion on the benefits statement.

Different phases of entry into force

The requirement to notify the FSMA about the number of Individual Pension Plans and any change in pension institution and the subsequent transfer of reserves was eliminated on 1 January 2023. Most of the other provisions will come into effect next year or the years after

On 22 December 2023, the law containing various provisions on pensions was published in the Belgian Official Gazette. Among other things, this law provides for a deferred entry into force for several provisions of the Transparancy Law.

Below is an overview of the new effective dates for different aspects of the Transparency Law: 

 

The provisions relatin​g to ...

 

 

... take effect on:

 

  • the disbursement process
1 January 2025 (instead of 2024)
  • pension statement

1 January 202​6 (instead of 2024)

The additional pension statement on interim events comes into force on 1 January 2028

  • the affiliation document (incl. availability on mypension.be)
1 January 2026 (instead of 2025)
  • the information to those in receipt of interest
1 January 2026 (instead of 2025)
  • the transparency report

1 January 2027 (instead of 2026)

Availability on my​pension.be takes effect on 1 January 2028

What next?

We will be updating you regularly on the changes we are making as a result of this new Law and will keep you informed if there are any changes for you and/or your plan participants. 

Moreover, at AG, we go even further! For example, on 10 November 2023, we organised an EB Atelier to work with some employers on how to optimise future communication to affiliated employees, with a great deal of interesting feedback. Would you also like to be invited to a future EB Atelier or an EB Lab where you can be the first to test our innovations and give your opinion on our communication? Then be sure to sign up.​

​Indeed, AG remains committed to providing transparent and clear information. Via MyAG Employee Benefits, your employees always have a nice and up-to-date overview of the benefits you offer them as an employer, both via PC and via the app, which makes all the fringe benefits extra tangible.

If you have any questions or require additional information, your regular contact person will be happy to assist you.


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