| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2014) 167 final (27.03.14) |
| Publication Date | 27/03/2014 |
| Content Type | Policy-making |
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European society is ageing. Pension systems across the European Union (EU) have to adapt in order to ensure adequate, safe and sustainable pensions. This is not a simple matter. Effectively addressing these challenges requires closely coordinated action by Member States. The proposed revision of Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision (IORPs) will make those institutions better governed, more transparent and increasing their cross-border activity, thereby strengthening the internal market. This proposal builds on a number of initiatives launched in recent years such as the White Paper on pensions and the Green Paper on long-term financing of the European economy. Following on from this last Paper, the revision of the Directive also aims to strengthen the capacity of IORPs to invest in assets with a long-term economic profile and support the financing of sustainable growth in the real economy. The IORP sector is being developed in many Member States where occupational pensions so far play a limited role, including by setting up regulatory frameworks. Failing to provide an up-to-date EU regulatory framework now entails the risk that Member States continue to develop diverging solutions, thereby exacerbating regulatory fragmentation. Furthermore, improvements to the performance of occupational pensions require long periods of time to materialise. Failing to act now would lead to lost opportunities in terms of cost savings and investment returns, and inadequate financial planning by millions of Europeans. It would also increase the burden disproportionately for younger generations and undermine inter-generational solidarity. This proposal does not consider the introduction of new solvency rules, which are in any event not relevant for defined-contribution (DC) schemes. Moreover, a quantitative impact study conducted by the European Insurance and Occupational Pensions Authority (EIOPA) in 2013 indicated that more complete data on solvency aspects are necessary before a decision can be taken on those aspects. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2014:167:FIN |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
