26 January 2016

Pensions Europe: ECON Committee in favour of a more practicable, proportionate and less prescriptive IORP II proposal

Janwillem Bouma, Chair of PensionsEurope, said: “We have been following the discussion in the European Parliament very closely and we are happy to see that the ECON Committee adopted a much more practicable, proportionate and less prescriptive proposal, with more flexibility for the Member States. Member States should be given the necessary scope to tailor requirements, taking into account the differences between different systems. The IORP II is about better governance and disclosure, it is important to take into account different types of pension schemes, as well as the role social partners have and the differences in social and labour law. In ECON Committees’ report there is a welcome consensus on the recognition of the social purpose of IORPs and on simplifying the Pension Benefit Statement. We look forward to continue engaging with the Commission, Council and Parliament to secure a good outcome for IORPs.”

The Chief Executive of PensionsEurope, Matti Leppälä, commented: “One of the original goals of the European Commission was to increase the number of cross-border pension schemes; however, the Commission did not propose to modify rules requiring fully funding at all times of cross-border schemes – a major barrier to the development of cross-border pension schemes. We are glad to see that the Parliament addresses the current requirement for cross-border schemes by removing this requirement, instead proposing that cross-border pension schemes would simply be subject to the same funding rules as domestic schemes. This is a welcome reform, which should make it easier to establish and operate cross-border pension schemes.”

Full press release

Report on the proposal for a directive of the European Parliament and of the Council on the activities and supervision of institutions for occupational retirement provision (recast)

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