FSMA publishes a new opinion: the increase in a fringe benefit that is not itself a supplementary pension is, in the event of the death of one of the parents, not necessarily a supplementary pension.
The increase in a fringe benefit that is not itself a supplementary pension (e.g. child supplement, study grant, etc.), made in the event of the death of one of the parents, is not necessarily to be regarded as a supplementary pension within the meaning of the Law on Supplementary Pensions, provided the following conditions are met:
(i) The increase in the event of death should be regarded as of secondary importance in relation to that fringe benefit. In other words:
- the fringe benefit is granted independently of anyone’s death;
- the increase in the fringe benefit in the event of death is not very substantial in comparison with the amount of the fringe benefit that was paid before the death.
(ii) The increase must be intended to supplement an existing fringe benefit that serves the same purpose (for example, contributing to the tuition costs of school-aged children) and not to provide a survivor’s pension. This intention must also be clearly formulated in the contract.