Belgian occupational pension funds remained financially robust at the end of 2024, with an average long-term funding ratio of 123 per cent, according to the Belgian Financial Services and Markets Authority (FSMA).

The FSMA's Annual Report 2025 showed that the sector's average short-term funding ratio, based on accrued pension reserves, stood at 142 per cent at the end of 2024, while the average long-term funding ratio reached 123 per cent.

Both measures remained stable or improved compared with 2023, supported by average investment returns of 8.6 per cent during 2024.

At the end of 2024, the FSMA reported that 12 pension funds were in deficit, including nine with partial funding shortfalls and three with global deficits. Six of those funds had deficits against their short-term technical provisions, representing members' accrued pension reserves.

However, according to the FSMA, all of these funding shortfalls had been fully eliminated during 2025.

The regulator also highlighted the resilience of Belgium's occupational pension sector following the latest liquidity stress test coordinated by the European Insurance and Occupational Pensions Authority (EIOPA).

The exercise, which included 156 pension funds from 18 EU member states, including 17 from Belgium, found that European pension funds would be able to withstand severe liquidity stress while continuing to meet pension payment obligations.

The FSMA noted that Belgian pension funds demonstrated even "greater resilience" than many of their European counterparts because they typically hold a higher proportion of liquid assets.

In addition, the regulator also said it is closely monitoring the prudence of the discount rates used by pension funds to calculate technical provisions, after finding that some schemes had adopted higher discount rates as interest rates have risen since 2022.

It warned that excessively high discount rates could undermine the long-term financial balance of pension funds if technical provisions increase faster than assets.

“The FSMA has contacted the pension funds using excessively high discount rates and continues to monitor them closely. Regularly assessing whether discount rates remain realistic and prudent as part of a pension fund's risk management framework is considered an important element of good governance,” it stated.

Looking ahead, the FSMA said its supervisory priorities for 2026 include inspections of transfers to multi-employer pension funds, as well as reviews of investment risks, prudent funding and the impact of management costs on members' pension savings.

Commenting on the report, Belgian pension association PensioPlus stated that it presented a “nuanced but predominantly positive picture of the Belgian pension fund sector”.

“The financial fundamentals are strong: funding ratios remain high, total assets are increasing, deficits have been eliminated, and the sector is demonstrating resilience against liquidity risks.

“At the same time, the annual report makes clear that financial soundness alone is not sufficient. The FSMA also expects correct pension regulations, reliable administrative processes, prudent technical parameters, transparent communication, and demonstrable control mechanisms.

“For pension funds and plan administrators, the core message is therefore clear: the sector is in good financial shape, but good governance remains decisive.”

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