On Thursday 24 November, the European Parliament enshrined the inter-institutional agreement on the revision of the 'occupational pensions funds' directive (IORP II) (see EUROPE 11584).
During the plenary session debate the day before, Brian Hayes (EPP, Ireland), Parliament's rapporteur on this dossier, said that the agreement brought "more protection, more transparency and more security to the way that occupational funds are managed across Europe". He feels that the revised directive strikes the right balance between "respecting differences between member states' individual pension schemes and encouraging pension mobility within the European Union".
For the first time, this legislative provision brings in rules in the event of the cross-border transfer of an occupational pension scheme. In such cases, the green light of a majority of members and beneficiaries will be necessary, as well that of the supervisors in both member states concerned, on the basis of a stringent list of criteria. We have made sure that there is "just one single authorisation from the regulator of the host member state along with the prior consent from the home member state regulator", Hayes stressed.
The pension benefit statement, which is regularly sent to beneficiaries, will contain key information, such as contributions made, costs, guarantees obtained and projections in terms of income. According to Commissioner for Growth Jyrki Katainen, individuals will "receive updates about their pensions regularly and will be able to make more informed choices about where they put their money".
Before making investments, occupational pension institutions will have to assess the social and environmental risks of these. "This idea follows the work of the United Nations. This is the first financial services directive in which such a requirement has been incorporated", the rapporteur stressed. (Original version in French by Mathieu Bion)