Mr Leppälä argued that the valuation of pension promises using a 99.5 per cent level of confidence based on a value-at-risk framework should remain with the social partners. But he also warned that the framework currently on the table could instead mean the Commission is looking to oversee those agreements.
In its consultation paper, the European Insurance and Occupational Pensions Authority (EIOPA) stipulates that occupational pensions taking part in the 'holistic balance sheet' quantitative impact study will need to calculate their solvency capital requirements, which set out the risks that should be considered by IORPs.
Leppälä argued that the EFRP's members believed the pension promise could change – "not in all countries in the same way, but, in many countries, they are the result of collective bargaining or agreement between social partners and can be adapted". He insisted that such agreements did not fall within the Commission's scope. "If the social partners consider workplace pensions to be part of salary, it should be for them to agree if they wish to have a more flexible promise", he said.
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