EMAC vote on Pension Funds Directive – second reading

19 February 2003

The Economic and Monetary Affairs Committee (EMAC) approved a series of compromise amendments to the Council common position on the Pension Funds Directive. The adopted compromise package was found right before the official vote and included former compromise amendments A, M, O, U, and amendments 5, 38, and 45.

One amendment seeks to introduce a transitional period of five years for those Member States which do not currently operate the prudent person principle. Other amendments seek to strike a balance between making such schemes attractive to the pension funds and at the same time ensuring social benefits to cover, for example, provisions for survivors or disability, albeit with due respect for subsidiarity and benefits offered by state pension schemes.

On another contentious issue, a retirement benefit in the form of a lump sum, the committee voted for a compromise stipulating that this should be used ”with the aim of ensuring financial security in retirement”, whereas no stipulations are placed on such a benefit in Council’s common position.

Further amendments seek to clarify the text and strengthen supervision of the pension funds through the establishment of national registers. The committee also voted for the establishment of a coordination committee to foster cooperation between the various national authorities and ensure a uniform application of the legislation.

Recommendation for second Reading
Compromise package

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