25 August 2011

IPE: Aon Hewitt claims pan-European pensions regime could be way forward

Aon Hewitt suggested considering a pan-European pensions regime instead of individual national guidelines. In its submission to EIOPA, the consultancy argued that employers should be granted more freedom to design retirement programmes to align them better with their own corporate needs.

It also urged the EC to reform the IORP Directive to allow for a more business-friendly environment, guaranteeing the affordability of pension arrangements. Leonardo Sforza, head of research and EU affairs at Aon Hewitt, said that, beyond the limits of the IORP Directive, a new supervisory regime might best serve the needs of multinationals. "The needs of multinational companies that operate in different countries and wish to provide occupational pension arrangements could be better addressed by looking at the feasibility of a pan-European optional pension regime, which could be used in place of multiple national-specific regimes", he said.

Sforza likened the changes he recommended for the IORP Directive to physiotherapy, rather than an invasive medical procedure. He said a business-friendly regulatory environment was needed, so that all parties – ranging from employers and employees through to financial service providers – could "reap the full benefit" of the EU single market. He said: "The affordability of current and future pension arrangements for employers is a crucial issue to be considered by policymakers and supervisory authorities at both the national and European levels".

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