EU Pensions – New IORP Directive Overview of the proposals

June 2014

The new EU Pensions (‘IORP’) Directive

On 27 March 2014, the European Commission issued its proposals for a new directive on the activities and supervisions of Institutions for Occupational Retirement Provisions (IORPs). This will affect occupational pension schemes across all Member States in the European Economic Area. The new directive will replace the previous IORP Directive which was adopted in 2003.

The Commission’s general objective is to facilitate the development of occupational retirement savings, and to reinforce IORPs’ role as institutional investors in the EU’s economy.

The proposal has four specific objectives:

Remove remaining barriers for cross-border IORPs Ensure good governance and risk management Provide clear and relevant information to members and

beneficiaries Ensure that supervisors have the necessary tools to effectively

supervise IORPs

This document summarises the main contents of the new proposals

Contents

Executive Summary 1

1. Financing & solvency requirements 2

2. Governance 3

3. Information for members, prospective members and beneficiaries 5

4. Cross-border IORPs 6

5. Prudential regulation and supervision 7

Contact 8