Pension Funds in Luxembourg

Two vehicles

Luxembourg offers two dedicated pension vehicles under the Law of 13 July 2005, both supervised by the CSSF:

• SEPCAV (pension savings company with variable capital): does not itself carry biometric or investment risk and typically serves defined-contribution schemes.
• ASSEP (pension savings association): may also itself guarantee benefits and serves defined-benefit as well as defined-contribution schemes.

Both can be organised as umbrella structures.

Cross-border in the EU

The framework implements the IORP II Directive (EU) 2016/2341, so a Luxembourg pension fund can operate across the EU. For individual savers, the Pan-European Personal Pension Product (PEPP, Regulation (EU) 2019/1238) has applied since 22 March 2022.