Portability cont'd - AG Employee Benefits

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Published on 31/10/2018

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Pensions Portability Directive (cont’d)

This past June, we touched on the impact this Directive would have once it was transposed into Belgian law. In this month’s edition, we will be covering the consequences of this development on your supplementary pension commitment in greater detail.

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As you may recall, this EU Directive was passed into national law via the Act of 27 June 2018. The highlights are the elimination of the waiting period and the vesting period that will apply as of 1 January 2019. This means that as from this date:

  • New hires will be enrolled in the plan immediately upon joining the company and will no longer have to wait until they reach the age of 25, for example.
  • Pension rights will be acquired as of Day One of enrolment
    In addition, in cases where the value of the vested reserves on the departure date is less than or equal to EUR 150, the legislation states that, unless otherwise stipulated in the pension plan regulations, the vested rights will continue to be managed by the same pension institution and will remain invested in the former employer’s group insurance plan, without other option for the affiliate.
    In practice, however, and depending on the pension plan regulations you have
    with AG Insurance, each plan participant will be given, in case of departure,
    the same options regarding their accrued reserves, regardless of the value
    .
  • Staff members that joined the company prior to 1 January 2019 but that did not fulfil the eligibility and/or vesting requirements for a supplementary pension under the previous legislation will be enrolled and/or will accrue pension rights (as of their enrolment date) on 1 January 2019.

You will find further information in the addendum to your regulations that will be available from late 2018.

In the meantime, if you have any questions or require further clarification, you are welcome to contact your regular representative at any time.