EFRP criticizes new Portability Directive

20 October 2005

The European Federation for Retirement Provision (EFRP) said it still has many reservations about putting the concept into practice because of the diversity in occupational pension schemes and types of funding vehicles in the EU. Chairman Jaap MAASSEN said that “increasing the coverage of affordable and adequate occupational pension provision calls for simplification and cost-effectiveness. Increased costs ultimately mean lower pensions unless contributions increase significantly

According to EFRP, the cost impact could be dramatic considering that 1 percentage point indexation of both deferred pension entitlements and pensions in payment corresponds to a 15 % increase in liabilities.

Press release

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