Occupational pensions: Revision of the Institutions for Occupational Retirement Provision Directive (IORP II)

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%). The proposed revision aims to improve the governance, risk management, transparency and information provision of IORPs and help increase cross-border IORP activity.

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 2016, and then adopted by the Council of the European Union on 8 December 2016.

The new law came into effect on 12 January 2017 and Member States have two years from then to transpose it into national law.

Author: David Eatock

ESO: Background information: Prospects For Occupational Pensions In The European Union http://www.europeansources.info/record/prospects-for-occupational-pensions-in-the-european-union/

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