In 2014, the European Commission proposed a revision (‘IORP II’) of the existing Institutions for Occupational Retirement Provision (IORP) Directive of 2003, which covers certain occupational pension savings.
These are overwhelmingly in the United Kingdom (55.9% of IORP assets) and the Netherlands (30.7%).
Stakeholders generally welcomed the focus of the proposal and the lack of new prudential rules, but felt the revision was overly detailed and prescriptive and did not respect national competences, nor reflect the variety of IORPs and their position as social (not just financial) entities.
Following trilogue discussions, the compromise text was adopted at first reading in the European Parliament’s plenary on 24 November, and then adopted by the Council on 8 December.
It came into effect on 12 January 2017 and Member States have two years from then to transpose it into national law.