PUBLIC SECTOR PENSION SCHEME OF VBL Country: Germany. Database Update: June 2009

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1 Database Update: June 2009 Name of Scheme: Versorgungsanstalt des Bundes und der Länder (VBL), Pension Institution of the Federal Republic and the Federal States (Länder) Managing Institution: Supplementary pension institutions are either independent structures governed by public law or they can stand as specific services within local governments or civil servants pension institutions. Even in these later cases, they have an independent management and their own decision making bodies. A manager or an administrative board holds the responsibility of administration. VBL is an independent public law-institution. The decision-making bodies are the Administration Council and the Management Board. Current business and representation of VBL is done by the three fulltime members of the Management Board (Executive Board). Chairman of the Management Board is the president of VBL. Address: Hans-Thoma-Straße 19, Karlsruhe, Germany spokeswoman: Andrea Reschka, Phone: +49 (0) , Fax: +49 (0) , andrea.reschka@vbl.de In charge of EAPSPI-matters: Claudia Wegner-Wahnschaffe, Phone: +49 (0) , Fax: +49 (0) , claudia.wegner-wahnschaffe@vbl.de Web site:

2 1. DESCRIPTION OF THE SCHEME Scheme features Basic or supplementary? (Please, choose one) Basic. Supplementary. Combination of both systems Compulsory or voluntary? (Please, choose one) 1 Compulsory. Voluntary. Combination of both (i.e. compulsory membership with possibility of a supplementary voluntary insurance; see ) Governed by: (Please choose as adequate) Law. Collective agreement. Both. Others (please specify): Please, indicate legal basis or collective agreement: 1. Law on promotion of occupational pensions. 2. Collective agreements: - relating to supplementary pensions for local government and church staff. - relating to old age insurance for employees of the State and the Länder. Both agreements have been signed on and replace the former agreements enforced in Specific regulation on voluntary insurance: collective agreement on salary forgone for municipal public employees (TV-EUmw/VKA) and on salary forgone for employees of the States. 1 VBL has got two divisions: The compulsory insurance and the voluntary insurance

3 3. Regulations of VBL (VBL by-law), Regulations of the supplementary pension institutions for local government and church staff (AKA) System classification 2 : a. Please choose one Defined Benefit (DB) Defined Contribution (DC). Mixed b. Please choose one 3 : Pay As You Go (PAYG). Funded. Hybrid c. Method of acquiring rights (Please choose one): Points Annuities Other (please specify): Taxation principles (regarding Contributions/Returns/Benefits): EET (Exempt/Exempt/Taxed). ETT (Exempt/Taxed/Taxed). TEE (Taxed/Exempt/Exempt). Others (please specify): Transition from TEE to EET since 2006 to Fiscal advantages (for employers, employees and for the pension institution), if any apart from the ones mentioned in : 2 The compulsory insurance VBLklassik is a defined benefit system. The voluntary insurance is offering two products VBLextra and VBLdynamik. The first voluntary product includes a defined benefit promise on the base of the VBLklassik points model. The guaranteed interest rates are lower than in VBLklassik. The second product is an insurance linked to a fund (DC). Investments vary according to the life cycle. 3 After starting out with a pay-as-you-go system at a rate of 1 percent the financing pool of East German employers is moving towards a funded scheme financed by additional contributions paid half by employers and employees as from Accrued rights will be financed by pay-as-you-go like before. At present the rate is 1 percent of pensionable salaries. Newly are funded

4 Legal position regarding EU legislation. Please indicate, answering yes/no, under which EU-legislation your scheme falls. The following classification maintains the current subdivision into three pillars: a. Regulation 1408/71(in the future: Regulation 883/2004) - statutory application of this Regulation or by notification of the Member State: No b. Directives for supplementary pensions, such as Directive 98/49 EC, Directive 2003/41 ( Pension Fund Directive ), Proposal of a Directive to improve portability of supplementary pension rights COM(2005) 507 ( Portability Directive ): Partially if applicabel c. Life insurance Directives (in the future the Solvency II Directive ): No 1.2. Population involved Employers a. Who they are (e.g. ministries, public bodies, local governments, church staff, special entities employing teachers, police, fire-fighters, other particular entities for particular public services like energy, water, public transport, hospitals or childcare): The Federal Republic and the States (Länder), local governments and churches as well as other public service institutions like university hospitals, associations and entities fulfillung public duties b. Number of employers: VBL:

5 1.2.2 Employees a. Staff working for the above mentioned employers indicate if there are particular conditions like specific status, minimum working time, specific labour contracts minimum age for membership? Non civil servants of the above mentioned employers. Minimum age of 17, employees must be able to reach the vesting period of 60 months from the beginning of his insurance until reaching the retirement age setted by the statutory pension scheme b. Number of active employees: VBL: c. Number of retired employees: VBL: d. Number of former employees with deferred rights: VBL: Governance Decision-making body (Boards, trustees, etc, giving a brief description: number of components and their role, appointed and/or elected, renewal procedure ): The bodys of the VBL are the Management Board and the Administration Council. The VBL Management Board has got 17 representatives of employers and insured persons. There are nine members of public employers or sponsors, three of them working full-time at VBL doing business management and representation of VBL. All membered representatives of public employers are appointed by the Federal Ministry of Finance in accordance with the majority of the participating states. The other eight members representing the insured employees are appointed by the Administration Council at the recommendation of the trade unions (ver.di or dbb tarifunion). The duration of mandate is five years for all members of the Management Board. The Management Board has to decide basic strategic, organisational and policy related questions. The Management Board is chaired by the president

6 The VBL Administration Council is a parity representation of joined employers and insured employees. The Council has got 38 members. 19 members who represent the public employers or sponsors are appointed by the Federal Ministry of Finance at the recommendation of the sponsoring members (Federal republic and the participating states). The other 19 members who represent the employees are appointed by the Federal Ministry of Finance at the recommendation of the unions (ver.di or dbb tarifunion). The duration of mandate is four years. Both parties (employers and employees) vote their chairman, the chair changes every year. The Administration Council is setting the regulations of VBL which have to be approved by the Federal Ministry of Finance (Supervisory authority) resp. Federal Institute for Financial Services Supervision. Calculation parameters (contributions to the scheme) are defined by the Administration Council as well as the approval of our annual report. In addition we have a specialized committee consisting of selected members of the Management Board and the Administration Council which is concerned with financial and investment matters (real estate) Supervision (indicate the supervisory entities overseeing the scheme, if any, pointing out the nature of their supervision financial, legal ): Supervising authority of VBL as institution and of the compulsury insurance is the Federal Ministry of Finances. The division of voluntary insurance ist supervised by the Federal Institute for Financial Services Supervision Basic financial data Income a. Global amount of contributions: compulsory insurance: 4.688,6 Mio. ; voluntary insurance 135,2 Mio b. Scheme s financial results, its return on investments in net/gross terms (for the last year, last 5 years, last 10 years, last 15 years, last 20 years, since inception as it results feasible) : - 6 -

7 2008 net 436,3 Mio. gross 517,4 Mio. last 5 years net 429,8 Mio. gross 505,5 Mio. last 10 years net 392,0 Mio. gross 470,3 Mio. last 15 years net 413,1 Mio. gross 489,9 Mio. last 20 years net 452,6 Mio. gross 524,6 Mio c. Reserves (for funded schemes). If possible, including legal funding requirements, funding ratio : Expenditures a. Global amount of benefits paid to beneficiaries as defined in 2 to 6 (i. e. old age pension, disability pension, early retirement, survivors pension for spouse or children), in local currency and/or : compulsory insurance: 4.332,4 Mio. ; voluntary insurance 0,9 Mio b. Administrative costs (if mentioned in Annual Report can be expressed as an amount, a percentage of the capital, a percentage of the total annual contributions, a percentage of the annual benefits, or any other figure 1,45 percent of the total annual contributions c. Other expenses (if representative): - 7 -

8 Asset Allocation (roughly, as a percentage with no decimals) VBL in total (compulsory and voluntary insurance): a. Fixed Income: 33 % b. Equity: 0 % c. Real Estate: 5 % d. Cash: 22% e. Others (specify if you consider it necessary): 40 % TOTAL: 100% 1.5. Contribution rates Employers: a. Is the contribution a percentage of a base? Yes b. If so, which base is the contribution calculated upon? On the base of the pensionable salary. In West Germany, the contribution rate of VBL is 7.86 percent on pensionable salaries. To cover the financial needs generated by the closing of the former benefit scheme an additional expenditure was introduced in West Germany in 2002 so called Sanierungsgeld (recapitalisation rate). This charge is paid by employers in different shares. The distribution takes particularly into account the relationship between the insured salaries and the pension liabilities of each employer. The volume of Sanierungsgeld is two percent of the insured salaries from 2001 plus an adjustment of one percent in every year. The Financing pool of the East Germany employers is going to change into a funded system by additional contributions paid half by employers and employees as from The pay-as-you-go rate paid by employers is one percent. The amount of contributions differs according to the kind of employer (Federal Republic, states, municipalities). As from 2010 the additional contributions - 8 -

9 into the funded scheme will be two percent by employers, two percent by employees for all c. If not, how is the contribution calculated? d. Is there a ceiling for the amount of the contribution? Yes e. If so, how is it calculated? The contribution assessment ceiling is the 2,5-fold amount of the ceiling in the statutory pension regulation f. Is the contribution compulsory? Yes g. If so, is there any additional requirement (e.g. it must be the same amount as the employee s contribution, or there is a vesting period, or )? Employees: a. Is the contribution a percentage of a base? Yes b. If so, which base is the contribution calculated upon? The pensionable salary c. If not, how is the contribution calculated? d. Is there a ceiling for the amount of the contribution? Yes. In the employers` 7.86 percent contributions the West German employees have a share which amounts 1.41 percent

10 1.5.1.e. If so, how is it calculated? For VBL (in West Germany) the collective agreement limits the employee s contribution to 1.41 percent. For employees of East Germany, on the occasion of the first modification of the ATV collective agreement, the social partners have agreed on a 0.2 percent contribution payable by employees as from January This contribution amount has to be raised up to two percent (four percent in total) by 2010 for all kinds of membership in East Germany (Federal Republic, states or municipalities) f. Is the contribution compulsory? g. If so, is there any requirement (e.g. it must be the same amount as the employer s contribution, or there is a vesting period, or )? Possibility of paying additional/optional contributions: a. The scheme admits (tick as appropriate): AVC (Additional Voluntary Contributions) Deferred compensation (part of the salary is transferred into the pension scheme in order to buy additional pension rights) Purchase of Additional Points Others (please specify): Active members of compulsory insurance may take out an additional voluntary insurance. For details look at point 5.2 (additional information) b. Are the optional contributions administered separately? Yes, they are paid in a separate insurance c. Indicate if the survivor coverage is subject to voluntary contribution (see 5.1):

11 1.6. Purchase of extra years / validation of past services Extra years: a. Is it possible to buy extra years (e.g. a person works for an institution during the fifteen years prior to retirement, while he is 50 to 65 years old; the institution s pension scheme could require a twenty years contribution in order to get a partial pension, or a full pension, or Is it feasible to buy -pay for them, usually after an actuarial calculation- the needed extra five years? Or even some more if the person wants to increase their pension?)? No, there is no possibility to buy additional years. In the voluntary insurance it is possible to accrue higher pensions by paying higher contributions b. If so, how is it done? Past services: a. Is it possible to validate past services (e.g. a person works for an institution during fifteen years but has not joined its pension scheme; after this time, she/he decides to join the scheme: Is it possible to make up for the unpaid contributions of those fifteen years?)? No, making subsequent insurance is practised only in very special cases (e.g. as a result of jurisprudence or if it is ruled in collective agreements). It is possible to pay additional contributions if they had to be paid in the past (in the case of false calculation or forgotten payments) b. If so, how is it done?

12 1.7. Portability Is it possible to execute transfers to the scheme? Yes, but only in the voluntary insurance Are transfers taking place at present (if they are possible and they are not being carried out, please explain why)? Transfers are possible corresponding to the act on promotion of occupational pensions if the required conditions are fulfilled. Due to this regulation only funded schemes have to transfer the cetv or the insurance. For that reason the pay-as-you-go financed or hybrid financed schemes are not obliged to provide transfers. German pension institutions of public services (AKA and VBL) have signed an agreement about the mutual recognition of insurance periods in The pension rights accrued in the scheme for municipalities and churches will not be transferred as previously. However, on employees request, there can be a mutual recognition of the insurance periods provided the qualifying period of 60 months has been completed. For bonus points the minimum period to be completed is 120 months. The same conditions apply for the compulsory insurance where an employee previously covered by a pension institution is affiliated to another institution after the age limit. At retirement, employees will obtain two pensions : one from VBL and another one from the last pension institution of AKA. In the case of group transfers, the recognition of insurance periods is subject to certain conditions. VBL practises cross border capital transfer for both compulsory and voluntary insurance to the pension scheme of the European Community and other European institutions If transfers are possible, describe briefly transfer conditions and process (please differentiate among national and cross-border level whenever it is feasible and relevant): Transfers on the national level comply with 4 of the act on promotion of occupational pensions. The transfer amount has to match the CETV at the date of transfer. The calculation has to be made by using a given database and authorized actuarial standards. The CETV-factors used for transfer of voluntary insurance values were calculated by independent actuary in relation to the age of the insured person. Cross-border transfers to the European institutions are practised only outbound yet and by using factors which have been determined by actuary as well

13 2. OLD AGE PENSION Qualifying conditions Retirement age: a. Legal compulsory age: 67 for both men and women b. Scheme compulsory age: like statutory pension (above) c. Minimum age: possible as from age 62 (after unemployment or cessation of activity) d. Maximum age: None e. Average age: VBL: 61, f. Are there different rules regarding certain groups (women/men, employed/unemployed, disabled persons )? If there are, please describe: Disabled persons are allowed to retire from the age of 60, 63 in the case of a long period of membership under the statutory scheme Qualifying period: a. Minimum period of membership -and/or at work in case it is relevant- (in years): 60 months of paying contributions in compulsary insurance. According to the act on promotion of occupational pensions rights are vested if an employee was given a 5 years lasting and continual pension promise by his employer. 4 The following remarks relate to the compulsory insurance

14 2.1.2.b. If it exists, please indicate if it is in the process of decreasing or increasing: The legal vesting period was set down from 10 to 5 years as from The supplementary pension schemes of public service employers postulated 5 years of contribution payment all the while Calculation method DB scheme a. Calculation formula: b. Brief description of the elements used in the formula (if they are not used, simply delete as adequate; if it is not considered, simply add it in the Others section): - Pensionable salary: - Accrual rate: - Vesting period, if any: - Minimum working time, if any: - Minimum number of years guaranteed, if any: - Maximum number of years, if any: - Minimum age, if any: - Maximum age, if any: - Others: c. Consequences of early/late retirement: DC scheme / or NDC (notional defined contribution) scheme a. Is there a guaranteed return? Yes. The age factors used are based on a 3.25 percent interest rate during the accrual period and 5.25 percent during retirement. The younger the employee, the higher the pension rights obtained since the contribution will be invested over a longer period

15 2.2.2.b. Please indicate the existence of any of the following (for any points not considered, simply delete as appropriate; if any points are not included, simply add it in the Others section): - Vesting period, if any: 60 months affiliation - Minimum working time, if any: Marginally employed persons (two months or 50 days of yearly employment) according to the statutory scheme - Minimum number of years guaranteed, if any: No - Maximum number of years, if any: No - Minimum age, if any: 17 - Maximum age, if any: see above - Others: c. Consequences of early/late retirement: Deductions according to the rules of statutory pensions d. Extra information affecting the calculation (unisex/differentiated tables by gender, different calculation depending on age or seniority ): Unisex tables The points model guarantees a level of benefits similar to the one that can be obtained in a money purchase scheme with a 4 percent contribution. 1/12th of the annual salary is divided by a reference salary of 1,000. The result is converted into pension points by using an age factor. The number of points is multiplied by the value of the point actuarially fixed, i.e. 4. The number of pension points is calculated as follows: Formular: salary. /.reference salary age factor = number of pension points In addition to the pension points determined on the notional 4 percent contribution, bonus points are granted on the basis of surpluses. If there is a real funding, this surplus is generated by the actual investment returns. If the PAYG system is still applied, the surplus is notionally calculated according to the average return of the 10 major German pension funds of insurance

16 Pension amount a. Is there a minimum guaranteed benefit? No b. Is there a limited maximum benefit to be paid? No fixed amount, following the ceiling of pensionable salaries Benefit payment/s: (please choose as adequate) Monthly payments. Lump Sum. Calculation formula: only in case of minimal amount pensions Bonuses (e.g. an extra payment at Christmas): Comments (possibility of various lump sums ): Benefit payment mechanism: (please choose as appropriate) Benefits are paid directly from the fund (e.g. as in a PAYG scheme). The individual economic rights add up to a determined amount which is converted into an annuity. Members are allowed to purchase annuities from a supplier. Comment on any other possibility: Nature of annuities: (please choose as adequate) Lifetime. Deferred. Variable. Comment on any other possibility:

17 2.3. Flexible or part time pension Can the pensioner continue at work while receiving a pension? Full time Part time No If so, what are the conditions to be met? a. Minimum age: b. Minimum period of membership/at work: c. Others (fill in as you consider appropriate): Calculation of the pension (is any reduction factor used?): Is there a minimum pension? Is the pension received while working a monthly payment or a lump sum? Is there a pension abatement over a certain salary level? If there is such abatement, how is it calculated? 2.4. Indexation Kind of indexation: (please choose one) Price indexation. Calculation: Wage indexation. Calculation: Other indexation. Calculation: Pensions are increased one percent every year according to the regulations No indexation Conditions applicable to early leavers for the indexation of deferred pension rights (if any): No

18 2.5. Distribution of rights in case of divorce: Are the pension rights split between spouses/partners in case of divorce? Yes. There has been a reform of the act on pension adjustment. Since 2009 accrued rights of an obliged person will be split. The divorced spouses will get their own pensions. Thus not insured spouses have to be insured after divorce If it is so, please give a brief description of how the division is carried out:

19 3. DISABILITY PENSION Qualifying conditions: (please choose one) Notion of disability linked to job related incapacity (incapacity to carry out the usual job) Notion of disability linked to work related incapacity (incapacity to carry out any job) Others. Please explain: 3.2. Pension calculation: The calculation is the same calculation as for retirement pension? No The calculation method: The scheme provides for disability benefits based on the basic scheme principle. In the case of partial disability, the beneficiary receives half the amount he/she would have received for total disability. For each month missing before the legal age, a 0.3 percent reducing factor is applied with a maximum reduction of 10.8 percent. This compensates the length of the inactivity period, like in the general scheme. In the case of partial or total disability before age 60, the employee is granted additional points which represent social elements (see above). For each full missing year before age 60, the number of extra points granted is calculated on the basis of the average salary of the 3 last year before disability Are there any extra pension rights? No Does the cause of the disability affect pension calculation (for example, does a work related disability provide better pensions)? No

20 4. SURVIVOR S COVERAGE 4.1. Surviving spouse (or partner) pension Accrual of survivor s pension rights a. The survivor coverage is: (please choose one) Compulsory Optional b. At the time of accruing survivor s pension rights, are there different options/alternatives? No Qualifying conditions (these ones or any other): a. Age: b. Minimum marriage duration: The duration must be more than 12 months unless there is a justified belief that the couple did not marry for reasons of safeguarding the spouse c. Any other requirement: Corresponding to the requirements of statutory spouse pension d. (Legal) Recognition of the following partnerships: (choose as adequate, as many as it is necessary) Spouses of different gender admitted (married). Spouses of the same gender admitted (married). Civil partners of different gender admitted (unmarried). Civil partners of the same gender admitted (unmarried). Couples of different gender with no legal liaison admitted. Couples of the same gender with no legal liaison admitted e. Divorced spouses/partners:

21 4.1.2.e.a. Are they entitled to the pension? No because accrued rights are beeing split after divorce. Divorced spouses have their own pensions e.b. Is there any (legal) pension sharing mechanism between present and past spouses/partners? No f. If a widow/divorced/partner remarries, does she/he lose any pension entitlement? They are stopped in the case of remarriage, but if the new marriage is dissolved, the pension is restored g. Is personal income taken into account at the time of calculating the surviving spouse pension? Yes Calculation method (considering the different possible alternatives): 55 percent of the occupational pension that the employee received or would have received if spouses are aged less than 40 on percent in the other cases. The pension of the surviving spouse plus the other survivor pensions (for children) cannot exceed the amount of the pension that would have been paid to the employee. If the case arises, the benefits are proportionally reduced Distribution of rights in the case of divorce a. Are the pension rights split between spouses/partners in the case of divorce? Yes b. If it is so, please give a brief description of how the division is carried out: See

22 4.2. Children pension Qualifying conditions a. Age limits: Pensions are normally paid until age b. Time duration: c. Possible extensions and their causes (e.g. disabilities, studies ): For students and orphans in professional training or in case of military service pensions are maintained until age 25. Physically or mentally handicapped children can keep their pension as long as they cannot earn a living d. Is personal income taken into account at the time of calculating the child pension? Yes Calculation method: The children of deceased employees or pensioners are entitled to a supplementary pension amounting to 20 percent of the supplementary pension for children who have lost both parents and 10 percent for those who have lost one parent

23 5. ADDITIONNAL INFORMATION Comments on recent, ongoing or future reforms: Last year there was an ECJ decision regarding supplementary pension rights of surviving civil partners of the same gender which will have an impact on decisions of the national German supreme courts. If civil partners must be equal treated like spouses collective parties will have to create new regulations Comments on any of the previous sections (please include the section heading references): ADDITIONAL VOLUNTARY INSURANCE (AVC) With the introduction of the pension point system applicable as from , the social partners have reformed not only the compulsory insurance, but they also require the supplementary pension institutions of the public service to set up a voluntary insurance relying on additional contributions complementing the compulsory system. The social partners also request the pension institutions to propose to their affiliated members a pension insurance on variable asset allocation system. This initiative allows the public service employees to benefit from the same State subsidies and incentives as those offered to private sector employees since This supplementary insurance is called Riester Pension after the federal Labour Minister serving at that time. One of the conditions necessary for the extension of the State subsidies to public service employees was the winding up of the old top-up scheme and its substitution by a new scheme which would not compensate the decrease in the basic pension. Municipal and church employees can benefit from a system of salary forgone (i.e. direct conversion of a part of salary into pension points) as from Employees of the Federal States are allowed to since 2007 whereas employees working for the Federal Republic are not entitled to such system. Up to four percent of gross salary can be used for this purpose, which reduces the part of gross salary subject to social contribution and taxes. This type of insurance does not benefit from State subsidies. The new pension insurance products The AVC systems are basically ruled by collective agreements. Employees have the opportunity to improve their compulsory coverage by purchasing additional points. Another voluntary insurance is possible under the form of a pension insurance based variable asset allocation, when the pension institution has

24 set up such system. Up to date, only VBL offers this product (so called VBLdynamik). From a legal point of view, the AVC system is an optional individual insurance. Employees are not only affiliated but also contractors or subscribers, except if their employer has subscribed for him. To allow the purchasing of additional points, the employer must be a member of the pension institution. As long as the work contract is valid, contributions to AVC are directly levied on the salary and transferred to the fund by the employer. When the work contract is over, the voluntary insurance can be maintained on the employee s request expressed within three months of the end of contract. AVC FOLLOWING THE POINT SYSTEM From a technical point of view, the AVC system is similar to the compulsory system. Therefore the calculation is as follows: This formula takes into account the State subsidies, considered as a part of the employee s contribution. The normal contribution is 480. This amount has been actuarially calculated and derives from the point value of 4, which applies both to the compulsory and the optional systems. AKA uses the same age factors based on a 3.25 percent interest rate during accrual period and 5.25 percent during retirement. Due to fact that VBL`s voluntary insurance is supervised by the Federal Institute for Financial Services Supervision different age factors for the optional insurance have to be used. These latter are based on a guaranteed return of 2.75 percent. As the actual returns are higher, VBL gives a profit-sharing up to 20 percent which cannot be legally guaranteed. Pension insurance relying on variable asset allocation This insurance system is a commitment which offers a guaranteed minimum. The contributions are shared into a saving part guaranteeing a minimum benefit and an investment part aiming to obtain a optimal return. The contract guarantees a minimum benefit under the form of a monthly pension determined by the accrued contributions. To insure this minimum, the saving part of the contribution is invested according to the prudential rules provided by the insurance law, whereas the investment part is freely invested according to

25 expected returns. To minimise the risk, investments are done according to the employee s age according to a life cycle model. Several compositions of asset mix are determined according to age, and when a certain age is reached, the assets are automatically transferred to reduce even more the investment risk. The benefits are the followings: occupational pension or lump sum. In case of death, survivors can also choose between a guaranteed annuity or a lump sum. Unlike the AVC system, the variable asset allocation system is accessible only before age 55. Pension rights can be released as from age 60 on beneficiaries request. Financing In the 2001 Old age pension plan, the social partners requested the pension institutions to organize voluntary insurance. Since pension subsidies are granted only when pension systems are funded, the pension institutions have created a special account, strictly independent from the compulsory system. Income and expenses including investments are considered separately. Therefore voluntary insurance has been funded from the start. It works according to its own actuarial business plan guaranteeing equivalence between contributions and benefits. Unlike the compulsory system, the voluntary scheme does not finance any social element (such as parental leave). Affiliated members are recorded with their own accounts and are informed each year about the situation of their accounts, together with the information delivered by the compulsory system Comments on any possible interesting information not considered in the questionnaire: 5.4. Comments on any possible restriction on the information to be displayed (e.g. section 1.4. to be accessible to other EAPSPI members only, or to the General Secretariat and Board only, or we will not answer that section as we consider it is for the member s internal use only, or to be used for statistical purposes only ). If nothing is declared, the General Secretariat understands that the authorisation to use and display the information is given, always limited to it being used according to the aim and mission of the EAPSPI, and for no commercial use of any kind: