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Figure 1
Source: www.sigedis.be
The Belgian government decided to create a supplementary pensions database in 2006 to collect
information within Belgium and overseas for salaried employees, self-employed individuals and civil
servants. The supplementary pensions database (DB2P) became operational on Jan. 1, 2011, with the
aim of overseeing the tax and social security legislation on the second pillar. The database enables a
consolidated view of an individuals pension and can be used to verify compliance with laws such as the
Loi sur les pensions complmentaires (LPC), Loi sur les pensions complmentaires pour indpendants
(LPCI) or the 80% rule. It also brings transparency to supplementary pensions, providing a consolidated
view of pension status via the www.mypension.be portal. Supplementary pensions are very important in
the European context given the aging population. The database also provides accurate statistics on the
second pillar, allowing individuals to better manage their post-retirement financial planning.
Benefit Statement
State Finance
Figure 2
Source: www.sigedis.be
Figure 3
Source: www.sigedis.be
There are several events that can trigger SIGEDIS declarations (see Figure 4).
Renewal of Insured
Departure of Insured
Out-Transfer of Insured
Declarations Events
Out-Transfer of Employer
In-Transfer of Insured
In-Transfer of Employer
Figure 4
Source: www.sigedis.be
For all the events listed in the figure, declarations need to be sent to SIGEDIS. Insurance companies that
offer second pillar pensions therefore need to adapt their IT applications to capture these events and
then create corresponding declarations for SIGEDIS.
Regulation
Employer
Create New Employer Information Data Declaration Refusal File File Declaration Regulation
Regulation Agreement Extractions Validation Generation Validations Traceability Security Expedition Declaration
Regulation
Document
Instauration
Procedure File Exchange History
Errors
Figure 5
Figure 6 provides an overview of the interactions between different parties involved in a SIGEDIS decla-
ration. It is a complex compliance project that demands deep domain understanding.
Operations
Fed. Admin
Finance
DB2P
Figure 6
Individual
Group Group
Pension Plan (EIP) Complementary
Pension Plan Pension Plan
Individual Pension
Legal Pension
Group Saving (PLCI)
Sectoral Sectoral
Pension Plan
Pension Plan Pension Plan
Complementary
Individual Pension
Saving (PLCI)
Legal Pension Legal Pension
Figure 7
This requires a complex multiyear IT program to create declarations on key information related to
second pillar pensions.
Key Challenges
To comply with SIGEDIS directives, pension providers must send pension-related information in a specific
format, and follow a specific schedule. However, there are several challenges for such a large-scale legal
IT program:
Compliance while keeping costs low: Given the slowing growth in the life insurance business, organi-
zations have to rein in operating expenditures and invest in strategic initiatives to accelerate growth.
Adherence to SIGEDIS eats into the budget for strategic initiatives.
Compliance skillsets and localization: Since this compliancy program is limited to Belgium, there are
few experts available to support the initiative. Multiyear programs such as SIGEDIS need a dedicated
pool of IT experts (business analysts, system analysts, developers, test analysts, project managers,
architects, etc.) to retain knowledge and support implementation.
Flexibility to adapt legacy mainframe applications: Most of the adaptations for SIGEDIS programs
need to be managed in legacy IT mainframe applications that are not built to support these require-
ments. A deep understanding of the IT application landscape is needed to identify and implement
complex changes within limited budgets and strict timelines. Requirements from SIGEDIS arrive
iteratively, and the final declaration contains sensitive financial information such as premiums, tax,
reserve, etc. This demands several rounds of verification and corrections internally before the data
can be sent.
Figure 8
SLA based
quality
1 2 3 4 5 Service.
20-30% less
cost.
Figure 9
With effective deployment of solution levers with a global partner, up to 30% cost savings can be realized
as compared with doing everything in house. Figure 10 (next page) provides an illustration.
Global Delivery Partner - Effort Distribution Efficient Operating Model for SIGEDIS Program
Illustrative Example on Cost Savings
Figure 10
After successful deployment of the solution levers, more savings can be realized by focusing on further
improvements.
Future Improvements
Remove
Remove Wastage
Redundancy
Automations to Improve
Remove the process Quality and Reduce Cost
steps that do not add
Automation Automations of
value or are
regression suite.
redundant to
optimize the cost. Automations of ST & UAT
suite.
Automations of manual
processes.
Figure 11
Source: Cognizant
Pension organizations can also consider a global delivery model by ceding end-to-end ownership of the
SIGEDIS program to a partner. This will enable the core internal team to focus on strategic initiatives
while saving costs.
www.socialsecurity.be
www.db2p.be
www.eb-connect.be
mypension.onprvp.fgov.be
www.assuralia.be
www.fsma.be
Acknowledgment
The author would like to thank Martin Havelka, Senior Manager Consulting at Cognizant, for his support
and guidance.
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