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  • 1. Case Study
    Thierry Verkest, Executive Director, Belgium and Luxembourg, Aon Hewitt
    Aon Hewitt - T : +32 2 730 99 11 - E : thierry.verkest@aonhewitt.com - www.aonhewitt.com
    1
  • 2. Dedicated Project Team
    Specific project requiring expertise and planning
    Pan European Pension funds is new concept
    Limited knowledge and experience
    Opening closed doors
    Specific skills and competences
    Financial, tax and legal implications
    Communication to local entities
    2
  • 3. Selecting Belgium as Home Country
    • Regulator accessible, open-minded and supporting
    • 4. No quantitative investment and financing regulations
    • 5. Flexible funding definition
    • 6. Investment policy according to prudent person principle
    • 7. Freedom of governance framework according to specific situation
    • 8. Zero tax base
    • 9. Establishment of pension councils (committees) to comply with local social regulations
    • 10. More than 20 year of experience with pension funds
    • 11. Multi-cultural, multi-lingual community in the centre of Europe
    Pension fund already in place in Belgium? Activity can be extended to cross-border
    3
  • 12. Selection of Host Countries
    Inventory of pension arrangements in Europe
    Type of pension plan
    Funding levels
    Investment policy
    Administration process and cost
    Level of local pension expertise
    Feasibility study for selected host countries: step-wise implementation process
    Impact on benefit design, funding, indexation, administration
    Which plans to transfer, which members to transfer
    Informal meeting with local regulator
    Communication to local management / employee representatives
    Resistance from local stakeholders and lack of understanding/misconception
    4
  • 13. Governance Framework
    General Assembly
    International Board
    Investment Committee
    Daily Management Committee
    Pension Council2
    Pension Council1
    Pension Counciln

    Country1 Country2 Countryn
    5
  • 14. Different Pension Plans in a Single Pension Fund
    Type of pension plan
    Defined Benefit / Defined Contribution
    Type of benefits
    Retirement / Death-in-service / Disability
    Type of financing
    Employee / Employer Contributions
    Benefit strategy
    Maintain existing local benefits
    Introduce cross-border pension plan
    6
  • 15. Define your Funding and Investment Principles
    Pooling of assets and liabilities
    Adequate liabilities to be covered by appropriate assets
    Financing Plan
    Level of pension liability = required technical provision
    Contribution policy
    Asset ring-fencing for each country section
    Reinsurance policy and captive management
    Statement of Investment Principle
    Investment strategy
    Risk measurement and management
    7
  • 16. How Does it Work?
    8
  • 17. Making Cross-Border Activities Operational
    Investments / Cash Management
    Actuarial Valuation Coordination
    Bookkeeping / Tax Declarations
    Legal housekeeping
    Annual Report / Reporting Authorities
    Reinsurance
    HOME Country (OFP)
    Financial Activities
    HOST Country
    Census Data Collection
    Recordkeeping
    Benefit Calculation / Communication
    Benefit Payments
    Actuarial Processing
    Reporting Members
    Administration Activities
    9