Law on Complementary Pensions (LCP)

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The 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 My Global 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.

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 year after. For example, the provisions on the benefits overview will be applicable as of 1 January 2024, and the provisions on the enrolment form will come into effect on 1 January 2025. 

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. 

As you probably know, AG has been committed for many years to providing transparent and clear information about the various group plans we offer (Pension, Death, Income Protection, Hospitalization and Outpatient Care). 

Via our secure My Global Benefits platform, your employees always have a clear, up-to-date overview of the benefits you provide them with as an employer. We will, of course, continue to offer and expand this service in the future. 

Indeed, we believe that My Global Benefits is the platform of choice to highlight your efforts in favour of your employees. 

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

Contact us