Addressing delegates at an industry conference in Brussels, Dombrovskis, who is responsible for financial stability, financial services and the CMU, said that the pan-European personal pensions product (PEPP) regime “would lay the foundations for a safer, more cost-efficient and transparent market in affordable and voluntary personal pension savings”.
The PEPP would offer additional incentives for retirement saving, alongside occupational and state-based pensions.
Dombrovskis acknowledged that the draft legislation would need to address tax challenges, as tax incentives vary widely between member states.
He said that the Commission wanted to ensure consumer mobility while keeping the same provider. At the same time, it wanted to ensure the PEPP could offer tax incentives.
With a PEPP in place, the European market for personal pensions products would grow “significantly faster”, Dombrovskis said.
EFAMA, the European fund management trade association, welcomed what it described as the “quick pace” with which the Commission was moving forward on the PEPP.
Matti Leppälä, secretary general of PensionsEurope, the European trade association primarily focused on workplace pensions, said it was pleased that the Commission had decided to proceed with the PEPP project.
“More funded private pensions in different forms are necessary for Europe to deal with the growing population and diminishing public pensions,” he said. “Increasing numbers of people are outside the scope of occupational pensions and good quality personal pensions can offer them better opportunities to save for their retirement and at the same time invest in the European economy.
“We look forward to learning how the Commission has resolved some of the difficulties in providing pan-European pensions, and especially what can be done with widely differing taxation rules which belong to the competences of member states.”
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