Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

05 November 2002

Council Common Position on Pension Funds Directive




-
The Council differs from the proposal in its view of their relative importance as well as the means to achieve them, and is of the opinion that some of the objectives are immediate, others for the longer term. It has been of paramount importance to the Council that Member States should retain full responsibility for the organisation of their pension systems as well as for the decision on the role of each of the three 'pillars' of the retirement system.

These views have led the Council to modify the Commission proposal on a number of points as outlined in the following section, in many cases drawing directly or indirectly on the amendments of the European Parliament. As a result, the Council believes that its Common Position is more balanced than the Commission proposal and that it adequately respects the principle of subsidiarity and addresses the concerns of Member States, the European Parliament and the Commission.

  • The title has been adjusted in order to bring out more clearly the fact that the Directive not only relates to the activities of IORPs but is also intended to enable their activities to be supervised;
  • The scope now ensures that the Directive applies where IORPs do not have legal personality and are run by management entities, as is the case in some Member States;
  • On the optional application to life assurance companies the Common Position states that the assets and liabilities corresponding to the occupational retirement provision business must be ring-fenced. It also stresses that the competent authorities of the home Member State are responsible for verifying the strict separation of the relevant occupational retirement provision business;
  • The Common Position affirms the home-country principle, whereby Member States are entitled to monitor the conditions of operation of institutions established in their territory;
  • Member State have to lay down the rules on information to be given to members and beneficiaries.
  • Member State may allow an institution to depart from the rule that it must always have sufficient assets to cover technical provisions.
  • The prudent person rule has been clarified. The rule on self-investment has been confirmed and supplemented with a ceiling of 10% in cases where the sponsoring undertaking belongs to a group;
  • The Common Position has broadened the freedom to provide asset management services (UCITS).
  • Any cross-border activity must be developed in full compliance with the provisions of national social and labour legislation on the organisation of Member States' pension systems, including compulsory membership.

    Council Common Position
    Council reasons

    © Council of the European Union


  • < Next Previous >
    Key
     Hover over the blue highlighted text to view the acronym meaning
    Hover over these icons for more information



    Add new comment