Pension Insurance
The CNAP (Caisse Nationale d’Assurance Pension) is the body responsible for administering the general pension insurance scheme for the private sector in Luxembourg.
Governance
The CNAP is overseen by a steering committee comprising representatives of the various stakeholders in the system:
a chairperson, a civil servant appointed by the Government; delegates representing private-sector employees appointed by the Chamber of Employees (8); delegates representing the self-employed appointed respectively by the Chamber of Commerce, the Chamber of Skilled Trades and the Chamber of Agriculture (3), as well as employer representatives appointed by the Chamber of Commerce (4) and the Chamber of Skilled Trades (1).
Funding
This governance structure reflects the joint management model of the Luxembourg social security system, bringing together representatives of employees, businesses and the State.
Within this framework, employers contribute directly to the financing of the pension insurance scheme through social security contributions.
Role of UEL
UEL closely monitors developments in the scheme in order to contribute to discussions on its financial sustainability and its adaptation to changes in the labour market and demographic trends.
Established in 2009, the CNAP was formed through the merger of four previously separate pension funds: the Old Age and Disability Insurance Fund, the Pension Fund for Private-Sector Employees, the Pension Fund for Craftsmen, Traders and Industrialists, and the Agricultural Pension Fund.
This reorganisation forms part of the Act of 13 May 2008 introducing a single status for employees.
Alongside the general pension scheme, specific pension schemes exist for certain occupational categories, notably civil servants of the State and local authorities, as well as employees of the CFL (Société Nationale des Chemins de Fer Luxembourgeois).