European Parliament’s rapporteur on the reform of the European regulation governing the pan-European personal pension (PEPP), Stéphanie Yon-Courtin (Renew Europe, French), advocated on Wednesday 3 June, during a debate in the Committee on Economic and Monetary Affairs (ECON) meeting, a series of measures to relaunch ‘PEPP’, launched in 2019 but never really finding its audience.
The rapporteur wants to change the product’s name, considering that its current designation is not easily understood by citizens. She mentioned in particular the option of the name ‘Euro Pension’, suggested by the European Insurance and Occupational Pensions Authority (EIOPA).
Ms Yon-Courtin also proposed adapting the risk exposure of the basic product in order to improve long-term returns and simplifying the advisory rules as well as the subscription arrangements, to make it more accessible.
In addition, the MEP supports the creation of a version of PEPP that could be offered by employers to their employees within the company.
Lastly, the elected member called for greater consistency with the other European regulations applicable to the sector, for tax treatment that would provide an incentive to encourage savers to sign up, and for a simplified key information document (‘KID’).
S&D. On the side of the European Social Democrats, the European Commission proposal (see EUROPE 13756/14) is seen as not broad enough. “We have to take an overall approach. Supplementary pensions must not be presented as an inevitable solution in the face of an anticipated weakening of public pensions. That is why take-up of these products has to remain voluntary. The European Commission needs to present studies proving that these personal pension products are better than the state products”, said Francisco Assis (S&D, Portuguese).
EPP. “Encouraging Europeans to supplement retirement savings by investing in a private personal product is vital”, stressed, on the right of the European hemicycle, Christian Democrat MEP Janusz Lewandowski (EPP, Polish), on behalf of his political group’s shadow rapporteur, Regina Doherty (EPP, Irish).
“The advantage of PEPP is that it can be offered to all Europeans, no matter where they live in the EU. In order for it to be a success this time, we need to be ambitious, while recognising subsidiarity and important existing Member States’ competences”, he added.
Towards parliamentary negotiations. “The Commission proposal provides a solid working basis, which is moving in the right direction. A few adjustments will be necessary, but we can work together beyond our political differences”, said Ms Yon-Courtin, whose draft report has not yet been made public. (Original version in French by Bernard Denuit)