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Several regulated pension funds have been designed for use both in the Luxembourg domestic market and the international market for expatriate workers:

• the SEPCAV (société d’épargne-pension à capital variable) is comparable to an investment fund of the SICAV type and is appropriate for defined contribution pension plans;

• the ASSEP (association d’épargne-pension) is suitable for defined contribution and defined benefit plans, and can accommodate both types of plans in a single legal structure by adopting a multiple compartment (umbrella) structure. An ASSEP can also fund death and disablement benefits. In this case, appropriate reserves need to be set aside.

These two vehicles are regulated by the law of 13 July 2005 implementing the EU Directive on Institutions for Occupational Retirement Provision (the IORP Directive), and which amended the law of 8 June 1999 which created the SEPCAV and the ASSEP.

The third option for a pension fund lies within the framework of the insurance legislation. These funds, which are supervised by the Commissariat aux Assurances and defined by a regulation of 31 August 2000, are referred to as CAA Pension Funds. The CAA pension fund is suitable for defined contribution schemes and defined benefit schemes (or both types in an umbrella structure) and/or supplemental benefits in case of death or disability of members. Four legal structures are available: a mutual insurance association (association d’assurances mutuelles), a cooperative company (société coopérative), a cooperative company organised as a public limited company (société coopérative organisée comme une société anonyme – ScoSA) and a non-profit making association (association sans but lucratif – asbl).

Alternative solutions for starting on a smaller scale are the Pension pooling vehicle, the group insurance contract and the pension trust.

You will find a more detailed presentation of the different pension funds available in our brochure, Luxembourg International Pension Vehicles.

The attached document contains Frequently asked Questions which you may find useful.