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EIOPA undertook a fact-finding mapping exercise to gather information on existing practices and approaches in Member States in respect of costs and charges faced by members and beneficiaries of IORPs, as well as what costs are present in Member States.
At large, a need for greater transparency and clarity is observed over what is often an opaque and ill-understood practice (although this does not apply to all Member States). In the context of the social element of pension schemes as providers of retirement income and the ongoing shift to DC pension schemes in many Member States, it is especially important for costs and charges to be understood in the IORP space.
Moreover, the concept of what is value for money should be further explored. EIOPA considers that it would be beneficial for all parties that bear costs and charges in IORPs if:
Although costs and charges should receive increased, specific attention, EIOPA believes that, when assessing if pension schemes offer value for money or are affordable, costs and charges should be considered in the context of contributions, risks and the performance of investments. EIOPA will take further steps to address these two issues, taking due note of the national initiatives that have already proven effective in this field and the differences in the IORP systems.