WIREDGOV

MEPs endorsed an informal agreement with the EU Council and Commission and Council on changes to the "Institutions for Occupational Retirement Provision" (IORPs) Directive by 512 votes to 70, with 40 abstentions.  One measure now requires fund providers wishing to transfer their portfolios across national borders, to first win the approval of a majority of members and beneficiaries.  Only then can they apply for authorisation from regulators.

The regulator in the home member state must give its consent before the decision is passed on to the receiving country. 

 More protection, more transparency and more security

Brian Hayes (EPP, Ireland), who steered the legislation through Parliament, welcomed the agreement. "We have achieved the right balance between respecting the differences between member states' pension systems while also encouraging pension mobility. This is a good day for European pensioners as we have brought more protection, more transparency and more security to how occupational pension funds are managed", he said.

The new rules also give added protection for pension scheme members and beneficiaries by improving their access to information, including a Pension Benefit Statement.  This document gives members "relevant and appropriate information" about the scheme.  During the global financial crisis, the failure of some funds led to a cut in some members' benefits. Under the new proposals, IORPs must inform their beneficiaries before making any such move.

Across the European Union there are around 125,000 occupational pension funds which hold assets worth €2.5 trillion on behalf of around 75 million Europeans (around 20% of the workforce). Among these funds, there is a considerable diversity of funding arrangements. Negotiators refrained from including EU-wide solvency requirements in the Directive, saying that this would be unrealistic "given the diversity of IORPs within and across member states."