On 13 July 2006, the Belgian government passed legislation enabling pan-European pension funds to operate in and from Belgium.
The adopted law, which transposes the European Council’s Directive on the activities and supervision of institutions for occupational retirement provision (IORPS Directive), introduces the regulatory framework for Organismes pour Fonds Pension (‘OFP’) to be created and is expected to come into effect at the end of 2006. The It is the first time that a purpose-built vehicle for occupational pensions will be available in Belgium.
OFPs will be available to Belgian-based employers for both their domestic and cross-border activities, and will additionally be available to multinational groups seeking to centralize their occupational pension plans in one European country.
In addition, Belgium’s Council of Ministers has agreed to introduce the EET pensions tax system for the OFP, whereby contributions are tax exempt, the funds are tax exempt during the “roll-up” period, but final benefits are subject to taxation.
Please note that the above communication merely provides a high-level overview of the legislative developments. Further details can be found at the referenced website included above.