Smaller pension funds do not always have the necessary budgets to comply with all governance requirements. Moreover, such puts more pressure on the financial results or asks too much management time for the Plan Sponsors.
Conac has developed a solution for these pension funds by the creation of a Multi-Employer fund ‘Pension & Co IORP’, on the one hand maintaining the benefits of a pension fund (flexibility, transparency, private investment policy, full allowance of the return) and on the other hand reducing the extensive overhead burden and corresponding budgets.
A Multi-Employer fund is an autonomous pension fund set up under the legal form IORP (Institutions for Occupational Retirement Provision, the Belgian legal structure for pension funds) in Belgium and under the authority of the regulator FSMA. Within this structure, several ‘separate funds’ can be created.
Assets of the different sponsoring undertakings are statutory and separately determined. Such means that there is no solidarity and that a 100% allocation exists of assets to each individual plan, even when there are shortages in another separate fund.