CMS Expert Guide to Pensions in Belgium

Belgium has a three-pillar pension system. The first pillar is a state pension, financed by all working employees through social security contributions calculated on their salaries. The second pillar consists of occupational pension plans, while the third pillar covers personal pension arrangements.

Occupational pension plans can be established at either industry or company level. These plans may provide benefits on a collective basis (for all workers) or for specific categories of workers. Most existing occupational pension plans are set up at company level. The benefits provided under these plans may be defined benefit, defined contribution, or cash balance (which combines features of both defined benefit and defined contribution schemes).

In principle, there is no general obligation for employers to provide supplementary pension benefits to their employees. However, if a pension plan is introduced at industry level, employers within that industry must contribute to it – unless they have their own alternative plan that offers benefits at least equal to those of the industry scheme.

Collective plans that require employee contributions and compulsory participation by all employees cannot be established at company level without the consent of employee representatives. If a plan does not include such requirements, the employer may establish it unilaterally. However, no collective plan can be introduced at company level if an industry-level plan already exists – unless the company plan provides benefits at least equal to those offered by the industry plan.

Yes. Pension plans must be operated by a recognised pension institution – either an insurance company or a pension fund (a specific legal entity separate from the employer). Participation in pension plans operated and/or financed directly by an employer is not permitted.

No. However, where a plan has been established at industry level, employers within that industry must contribute at least the amount required by the plan. In other types of occupational pension plans, there is typically a contractual obligation for the employer to contribute.

Yes. Pension institutions must always hold sufficient assets to meet their obligations. Legislation also requires a minimum guaranteed return for plan beneficiaries, depending on the nature of the plan and whether there are employee contributions. Currently, the guaranteed return is 2.50% (subject to fluctuation between 1.75% and 3.75%). If the guaranteed return is not met, the employer is ultimately responsible for covering the shortfall.

7. What age are benefits taken?

The age is defined by the plan, but not before the effective retirement age (currently 66) or the point at which the worker meets the conditions for early retirement.

Contributions may be made by the employer, the employee, or both, depending on the terms of the plan.

Pension institutions must issue statements confirming whether the conditions for the deductibility of employer contributions to the plan have been met.

In principle, both employer and employee contributions are taxed at a rate of 4.4% (although employer contributions meeting certain conditions may be treated as tax-deductible expenses – see below). Employer contributions are also subject to social security contributions of 8.86%. In addition, an extra employer social contribution of 3% applies to total contributions (both employer and employee) exceeding EUR 37,872 per year (indexed amount for 2025).

No. They are exempt from tax provided they are paid to the beneficiary at the same time as (and as part of) the pension benefits.

12. Are benefits taxed?

Yes. Benefits derived from employer contributions are taxed at 16.66% when paid after the age of 60 (and if the employee receives a legal pension). They are taxed at 10.09% if the employee remained active until the legal retirement age (currently 66 years). Benefits derived from employee contributions are taxed at 10.09% when paid after age 60 (if from contributions paid after 1993). Benefits are also subject to municipal taxes, a public healthcare contribution of 3.55%, and a solidarity contribution of 0–2%, as determined by the National Pension Office.

No

The tax deductibility of employer contributions is subject to several conditions, including the requirement that the contributions must entitle the employee to a pension benefit that does not exceed 80% of their final gross annual remuneration.

The regulator responsible for the prudential supervision of pension funds is the Financial Services and Markets Authority (FSMA). The regulator for the prudential supervision of insurance companies is the National Bank of Belgium (NBB). Both the FSMA and the NBB have extensive powers. At any given time, they may intervene and take measures to safeguard the position of a pension plan’s contributing members and beneficiaries, carry out on-site inspections, impose fines, or revoke the authorisation of the company or pension institution.

Pension institutions are subject to extensive information obligations. All relevant parties must inform the NBB or the FSMA, as applicable, of any event that could significantly affect the financial position of the pension institution, as well as any breach of legislation of which they are aware. Pension funds submit information to the FSMA via the online platform eCorporate, through which relevant documents can be uploaded. Insurance companies report to the NBB via the online platform OneGate.

Yes. In the event of insolvency, the NBB and the FSMA can impose a financial recovery plan at short notice, prohibit certain actions that could affect the financial position of the company or the pension institution, or restrict or deny access to the reserves linked to a specific pension scheme. In some cases, the employer may be required to make additional contributions.

Yes. In addition to a general prohibition against discrimination based on sex, age, race, civil partnership, sexual orientation, political or religious beliefs, or disability, it is unlawful to: (a) provide a survivor’s pension only to male or only to female beneficiaries; (b) make participation in the plan subject to age conditions; (c) treat male and female beneficiaries differently (except where based on differing life expectancy); or (d) treat full-time and part-time workers differently. In addition, a process to progressively harmonise pension plans for blue-collar and white-collar workers is currently under way. This harmonisation must be completed by 2030.

After one year of membership, employees acquire a vested entitlement to the reserves and benefits they have accrued in a pension plan. Upon leaving the company, employees may choose to: (a) leave their accrued rights in the existing plan and/or transfer them to an insurance contract, if permitted by the plan, and/or convert them into death coverage; (b) transfer them to the pension plan of their new employer; or (c) transfer them to a special type of insurance company that distributes all profits to its members.

When a plan is established at industry level, employees participate in its governance through the involvement of union representatives in the governing bodies of the pension fund.

Works councils and employee representative bodies may have the right to give advice on the implementation, amendment or withdrawal of a pension scheme. Where a pension scheme is incorporated into a collective labour agreement and/or the work rules, the consent of the union and/or employees is required.

Yes. Employer contributions to a pension plan operated by an insurance company or pension fund located outside Belgium but within the EEA are tax-deductible in the same way as contributions paid to Belgian-based entities. Tax relief also applies to employee contributions. The transfer of accrued rights to another insurance company or pension fund within the EEA is tax-exempt under certain conditions.

The same procedures for establishing a pension plan apply when switching employees between plans. The employer must inform any recognised collective bargaining representatives in advance of the change or, if none exist, the employees individually. Where a pension fund is partially financed by employee contributions, approval from employee representatives is required to proceed with the switch.