06 December 2005

EPPF Forum on 26th regime for pensions

The European Parliaments Pension Forum (EPPF) held a hearing on the possibility of 26th regimes provisions as raised by the European Parliament, in its post-FSAP resolution, and the European Commission, in its Green Paper on Financial Services. The European Financial Round-table (EFR), the European Federation for Retirement Provision (EFRP) and the European Federation of National Insurance Associations (CEA) presented their general views on a 26th regime for pension provisions.

The EFR summarised the report which called for the creation of Pan-European Pension Plans (EPP), a model for stainable pension solutions that secure a life-long retirement income for current and future generations.

EFR regards the IOPR directive as a catalyst for change and sees the introduction of European Pension Plan products as a third pillar alternative to it. Issues that had to be further clarified mainly refer to taxation issues and consumer protection. As to the EFR the holder of the new product should be taxed according to the EET-model, whereby a code of conduct could require the industry to provide an EU-wide standard summary of the key features and terms of the EPP.

Responding on the new concept the EFRP regarded the creation of an EPP an interesting 3re pillar product, but also warned about the danger to create jet another call for a new directive.

According to the EFRP the IOPR Directive should be allowed to work as it provides “sufficient” flexibility, particularly with regard to the debated portability directive.

EFR report
EFRP report

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