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Eiopa Stress Test for Belgian Pension Institutions

FSMA invites IABE to an info session on the EIOPA Stress Test for Belgian Pension Institutions

 

On 17 December 2019, EIOPA published the outcome of the 2019 Occupational Pensions Stress Test, which included some general elements about the Belgian situation.

  • On Monday 27 January 2020, FSMA hosted a meeting for the 14 Belgian pension institutions that participated in this stress test (together covering 60% of the market) and representatives of PensioPlus and IABE.
  • In the global report as published by EIOPA, we see that the Belgian institutions had under the base case scenario a coverage ratio of 123%, based on the national balance sheet.
  • Based on the common balance sheet approach, the coverage rate comes down to 107% under the base case scenario (against the total sample that has a 96% coverage ratio).

Based on the common balance sheet approach, the coverage ratio drops to 91% under the adverse market scenario (against the total sample that has a 79% coverage ratio).

  • No details were provided by company, but FSMA clearly indicated it is open to discuss the outcome of the stress test with each pension institution individually.
  • In the conclusions, FSMA highlighted the importance of further strengthening the risk management function at pension institutions and the role IABE could potentially assume in this process.