The consultancy conceded the current IORP Directive implemented in 2003 worked "very well" from a cross-border pensions perspective, and that regulators in different EU countries generally cooperated "effectively" and "facilitated" cross-border activity. It also stressed that, while the existing Directive worked well in enabling arrangements for future service, past rights were another issue. Paul Bonser, partner and leader of Aon Hewitt's UK International Retirement Practice, said: "Where the Directive is less satisfactory – and where we would like some change – is in enabling the way past service benefits from previous pension arrangements are consolidated".
Bonser went on to say that the IORP Directive should facilitate the cross-border consolidation of assets and liabilities. "A key part of the process of establishing a cross-border pension fund is the winding-up of existing local pension funds/insurance contracts and consolidating those assets and past service liabilities in the cross-border vehicle", he said. According to him, while some regulators in Europe already apply the "spirit" of the pensions Directive to cross-border asset transfers, others are taking a more protectionist approach.
Aon Hewitt called on Brussels to avoid "unnecessary changes" to the existing rules on cross-border pensions.
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