Publication of unisex mortality table XR

Following the modification of the Gender Act (21 December 2012), as a result of the Test Achats case law on gender neutrality with regard to insurances, the gender neutral mortality table (XR) has now been published in the so-called "Life" Royal Decree. This XR mortality table will also replace the gender related mortality tables (MR/FR) with regard to certain regulations concerning additional pensions.

In the beginning of 2011, the European Court of Justice ruled in the Test Achats case that insurance contributions and benefits with regard to individual insurances have to be gender neutral. The Constitutional Court joined this case law on 30 June 2011 (cf. Newsflashes of 2 March 2011 and 5 January 2012). As a result, the Gender Act was modified on 21 December 2012 (cf. Newsflash of 14 December 2012).

Subsequently, the gender neutral mortality table XR was introduced into the "Life" Royal Decree. This table has to be used to determine the contributions and benefits in new (insurance) agreements closed as of 21 December 2012. For the other (current) agreements, the mortality tables MR/FR can still be used. For the composition of the mortality table XR, apparently the average of 50-50 between mortality table MR and mortality table FR has been taken into account. Such as is today the case for the mortality tables MR/FR, the XR mortality table only determines the bottom limit. This means that it is possible to use more 'prudent' mortality tables.

Mortality table XR also has to be used for a limited number of commitments within a professional context, such as individual pension commitments (IPC) for independent managers and the transfers of reserves to a "welcome structure" (cf. Newsflash of 14 December 2012).

> Action point:

Ask your insurer if new rates apply for IPC's for managers and welcome structure agreements.