The second pillar databank (DB2P) compiles all data on supplementary pensions in Belgium.
Such a databank is obviously a powerful tool for the government to verify the correct application of fiscal and parafiscal taxes (including the 8.86% social security (NSSO) contribution and restriction of the 80% rule). Policymakers also gain a clearer picture via this tool of the cost price of the tax-related benefits in the second pillar and are able to quantify the impact of possible adjustments with specific data.
Employers can already currently consult the following information in DB2P:
- Regulations of existing pension schemes.
- Contributions paid for 2010-2013 for the purpose of calculating the NSSO contribution of 8.86%.
- The exceptional contribution of 1.50% for 2012-2014 levied on what are regarded as ‘high pensions’, including a detailed individual calculation for those to whom this contribution applies.
The intention is for everyone to be able to log into DB2P from 2016 with their ID cards and obtain an overview of all their existing supplementary pension schemes from the second pillar, i.e. both the contracts in force at their current employer and dormant contracts at previous employers. If this information on supplementary pensions is subsequently linked to the accrued statutory pension entitlements from the first pillar, everyone will always have a clear picture of their pension accrual.
Until now, pension institutions have entered the information in DBP2 and employers have not had to respond. However, employers will have to take initiative on the following points before the end of the year:
- Check whether all existing pension regulations for the company are available and state which regulations, if any, are linked via one pension commitment. This is important because the contributions paid will be tax-deductible from 2015 only if the corresponding pension regulations are included in DBP2. Whether or not different pension schemes are linked to a single pension commitment has consequences for subsequent amendments and the formalities to be observed under the Belgian Supplementary Pensions Act (Wet op de aanvullende pensioenen - WAP).
- Enter internal pension provisions (not applicable in pension institutions) that are still on the company's balance sheet in DB2P themselves. Internally financed pension schemes are no longer possible but existing schemes can be frozen at the level of the 2011 year-end provision. Such internal provisions often exist for self-employed directors or business managers and must now be entered in DB2P to remain exempt from tax from 2015.
We recommend that you take action sooner rather than later because access to DB2P must be requested in accordance with strict and rather time-consuming procedures. If required, you can give a power of attorney to a consultant to assist you in this complex matter.