The setting-up and management
of Pan-European funds
Pension institutions have for a long time been an exclusively national subject. However, the European IORP* directive 2003/41/EC has cleared the way for the creation of Pan-European funds, pension institutions that operate in various countries of the EU. A decision that goes without saying. After all, European unification has made it possible for increasing numbers of companies to set up business in different countries of the EU. What is more, the pension problem is pretty much the same everywhere: State pensions that are too low, an ever-decreasing birth rate and an aging population.
Why a Pan-European fund ?
Companies with employees in different EU countries can now bring their different local funds or group insurances under a single fund. This makes it easier to harmonise their policy in supplementary pensions. This means considerable simplification vis-à-vis administration, combined with significant economies of scale. And, because there is only a single fund, this will facilitate internal mobility within the company.
Why a Pan-European fund in Belgium ?
A Pan-European fund must be established in an EU country. The legislation of that ‘homeland’ then applies to the IORP. In our country, that is in the form of an OFP. In addition to the central location of Belgium in Europe, our country offers a particularly favourable fiscal regime for OFPs :
no tax on the increased values, dividends or interests,
no VAT on the management services,
a limited taxable basis in the corporate tax.
Belgium has moreover concluded a bilateral agreement with many countries to avoid double taxation.