1. 1 The Pension Scene in Belgium Karel Van Gutte General Secretary Thuesday 25 th October 2011

2. 2 Agenda 1.Introduction 2.Some challenges for the future 3.Some orientations 4.And the 2 nd Pillar? 5.What is BAPI ? 6.3 Pillar system 7.A few figures 8.Caracteristics of the Belgian system 9.Final comments

3. 3 2. Some challenges for the future At The Origin of the pensions: 1.No international careers 2.No flexibility 3.Carreers stopped at 60/65 4.Long-Life-Risk

4. 4 3. Some orientations Let’s stick to the principles of “pensions”: 1.Make the 1 st pillar strong and balanced 2.Provide greater equality 3.Adjust statutes 4.Make the retirement age variable

5. 5 4. And the 2nd pillar? 2 Possibilities: 1.Via a pension fund 2.Or through a group insurer

6. 6 5. What is BAPI-BVPI-ABIP? BAPI and its full members are 100% not-for profit: 1.Organises pension funds & sectoral sponsors 2.150 full members + 6 associated members 3.2 nd pillar = € 60 bn AUM: 1.€ 39 bn= group insurance 2.€ 16 bn = pensionfunds 4.Spokesmen 5.Member of AEIP and EFRP

7. 7 6. “3” Pillar system

8. 8 7. Few Figures Evolution of the asset mix of pension funds

9. 9 7. Few Figures Annual investment returns since 1985

10. 10 8. Caracteristics of the Belgian system Belgian system selected by AON-Hewitt, Towers Watson.. 1.Outsourcing of pension promise 2.Required yield of 3,25/3,75% & cost control 3.Paritarian management 4.Strong social and prudential supervision 5.Necessary to fill the 1 st pillar 6.2 nd pillar has a social role 7.Final responsibility of the sponsor

11. 11 9. Final comments 1.Important role for social partners 2.Strong first pillar 3.Guarantee for the intrest of the members 4.The odds are good: 1.Growing market 2.Stable social partners 3.Skilled people

12. 12 Thank you for your attention Questions ? Karel Van Gutte – Secretary-General Belgian Association of Pension Institutions Boulevard A. Reyerslaan 80 1030 Brussels Tel. : 02/706.85.45 - Fax : 02/706.85.44 E-mail: info@pensionfunds.beinfo@pensionfunds.be www.pensionfunds.be