Pension Funds & Governance
The Act of 27 October 2006 on the supervision of IORPS (Institutions for Occupational Retirement Provision) transposed EU Directive 2003/41 (the so-called IORP Directive) into Belgian law by putting in place a new and transparent flexible legal framework for pension funds.
A pension fund established in Belgium takes the legal form of an OFP (Organization for Financing Pensions). The OFP is a separate legal entity solely liable for its funds and obligations and distinct from the sponsoring undertakings.
It is specifically designed to allow for a flexible governance structure and organization. Moreover, it benefits from a very favourable tax regime (the so-called “zero-taxation on benefits”).
The activities of an OFP can be limited to Belgium and to one single pension plan, but it can also have cross-border activities and operate several pension plans applicable to employees working in different countries.
We can assist you in setting up a pension fund, in drafting the necessary corporate governance documents and policies and in negotiating the different contracts the pension fund will enter into. We can also help you with the legal aspects of the daily management of the pension fund.