Direct pension promise contracts need to be reported to DB2P before 31.12.2014

Written by Christiaan Moeskops 2 October 2014

In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension institutions have a reporting obligation to DB2P with regard to all occupational pension schemes managed by them. This mandatory communication includes a recurrent upload of individual pension contributions, accrued pension benefits for each scheme member, pension scheme rules, etc.

DB2P will be used by the authorities for controlling legal compliance of pension schemes and tax and social security compliance with regard to pension contributions.

Not only pension institutions but also other companies may need to upload information in the database. This is the case when a company made direct pension promises to employees (contracts concluded before 16 November 2004) or to company directors (contracts concluded before 1 July 2012). This reporting obligation applies irrespective of whether the pension promise contract has been funded by means of book reserves or by means of a so-called ‘key man insurance’.

Non-compliance implies losing the tax-deductibility for the company.