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The report highlights the main issues that national supervisors strive to address in order to ensure the making of effective investment decisions. Effective investment decisions are decisions made in the interest of members, working towards ensuring a sustainable level of pension income.
In most member states, occupational DC pension scheme members do not have the ability to make investment choices or have a limited ability to do so (a limited set of choices). As a result, members' "investment decisions" in this report generally refer to the selection of options (when choice is available). This is because in most cases, investment strategy decisions are made on behalf of members by other entities from the pension systems. In occupational DC pension schemes, the most important entity in developing the investment strategy is the IORP. However, in most cases the employer is also involved in the determination of the default investment option.
The analysis of the information provided by Member States has shed light to the following issues in occupational DC pension schemes, which EIOPA will consider moving forward and may also require further attention from policy makers: