The European Commission will launch a process to review European pension regulation when Michel Barnier, European Commissioner for Internal Market and Services, opens a public hearing on the review of the “IORP Directive”. The European Commission aims to make important elements of the Solvency II legislation for insurance companies applicable to IORPs across Europe. This objective is repeated in the Commission’s White Paper on Pensions, which talks of a “level playing field with Solvency II”.
"We believe that it is dangerous to apply legislation made for insurance companies to IORPs. There are fundamental differences between them. Any effort to harmonise the regulatory regime is based on flawed logic and could have unintended consequences on pension plan members, IORPs and the economy as a whole by impeding growth and job creation.
"We therefore call on politicians in Brussels and the European capitals to keep workplace pensions in Europe adequate and sustainable: this is crucial given the increasing role of occupational pensions in providing retirement benefits to European citizens now and in the future, as the population grows older and particularly as state budgets suffer from the impact of the crisis.
"We urge Commissioner Barnier and the European Commission, supported in its work by the European Insurance and Occupational Pensions Authority (EIOPA), to recognise the important issues at stake before making a proposal for a revised IORP Directive: the existence and adequacy of retirement provision to millions of workers and long-term economic growth envisaged by the EU2020 Strategy. We urge the European Commission to reconsider its plans and to create an environment that stimulates workplace pension provision. The impact of any new proposals must be measured through high-quality Quantitative Impact Studies, including assessment of the social, financial and economic effects of any proposed rule changes, and their macro-economic effects. A high-level political debate is also required with involvement from all the relevant stakeholders, most notably the European social partners."
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© EFAMA - European Fund and Asset Management Association
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