Minimum funding status: Classical life/Pension4life

As stated in the Law on Complementary Pensions (LCP), staff member reserves that accrue through a corporate-sponsored pension plan with an insurer must meet a certain minimum level, otherwise known as the LCP guarantee.

One of the requirements of this Law is that the actuarial reserves and the balance held in the financing fund must be greater than or equal to the minimum reserves specified in the LCP at all times. If this is not the case, the plan is considered to be underfunded.

The "Minimum Funding Status" document is for information purposes only and provides additional information about making up the deficit via the payment order. You do not need to pay the amount shown on this document.

The total contract deficit shown on the "Minimum Funding Status" document will first be checked against the remaining balance held in the financing fund. You will only have to make up the deficit (via the payment order) if the balance in the financing fund is insufficient to reach the minimum funding level.

The document shows the exact underfunding situation on the contrat, i.e. the difference between the minimum funding and the reserves held in the plan.

For actively employed staff members, the contract deficit will be listed per plan participant.

For former staff members who have kept their supplementary pension reserves invested in the pension plan ("dormant participants"), there will be one combined total for all participants instead of an itemised list per person. The details for these employees can be found in the .csv file.

By law, the contract deficit represents the share of your plans that must be funded at all times and is:

• for a DC plan, the difference between the minimum reserves as per Article 24 C (individual contribution) and the actuarial reserves A+C (employer contribution + individual contribution). This difference is referred to as a contract deficit as per Article 24 C.
• for a DB plan, the maximum between the minimum Article 24 C reserves and the accrued reserves A+C less the actuarial reserves A+C

If you want to know the size of your contract deficit as per Article 24 A+C for a DC plan, you can ask your account management team.