Institutions for occupational retirement provision directive. A pension scheme in the context of the iorp directive is an agreement laying down the pension promise to the members and beneficiaries of the scheme article 6 b. This directive is to be implemented in accordance with those rights and principles. Iorp i occupational pensions fund directive 200341ec of the european parliament and of the council of 3 june 2003 on the activities and supervision of institutions for occupational retirement provision. Institutions for occupational retirement provision directive 200341ec is a european union directive designed to create an internal market for occupational retirement provision. Eu directive on institutions for occupational retirement provision iorp ii. This does not preclude an iorp from satisfying the requirement by stating in such.
Directive eu 20162341, on the activities and supervision of institutions for occupational retirement provision iorp ii came into force on 12 january 2017 and must be implemented into irish law by january 2019. The new eu directive on the activities and supervision of institutions for occupational retirement provision iorp ii was adopted in 2016. Simply put, an iorp will remain subject to the prudential supervision of the relevant authorities of its home member state that is, where the iorp was established, but will also become subject to supervision by the relevant authorities in the host member state or states. The purpose of the 2003 iorp directive was to establish a system of regulation of iorps or occupational pension funds that was common across the european union subsequently adopted by european economic area eea countries of norway, iceland and liechtenstein. The eu commission has now proposed that the 2003 iorp directive be revised to address these issues. To simplify legal, regulatory and administrative requirements for settingup crossborder pension funds 2.
The revision of the iorp directive is becoming more and more a topic of discussion for social partners across europe in a number of industry fields. Simply put, an iorp will remain subject to the prudential supervision of the relevant authorities of its home member state that is, where the iorp was established, but will also become subject to supervision by the relevant authorities in the host member state or states where it. The directive harmonises basic prudential rules governing the operation of iorps. Eu pensions directive iorp ii legislative and regulatory updates present both risks and opportunities for pension scheme management, on both a local and multinational basis. Directive eu 20162341 of the european parliament and of the council of 14 december 2016 on the activities and super vision of institutions for occupational retirement provision iorps. Revision to occupational pensions directive iorp ii. Including the occupational retirement provision business of life insurance undertakings subject to article 4 of the. However, the iorp was since been revised in 2016 in response to financial crisis since 2008.
You can find out more about cookies in our cookie policy. However, the proposals to revise the iorp directive need to better balance measures that would make a real difference in crossborder provision and those aiming to ensure safety and security. However, in the view of cbbaeurope, the provisions of the iorp 2 directive. This has since opened up a range of possibilities for. Lcp guide to the new european pensions directive december 201 3 even though the uk will be leaving the european union we currently consider it likely that iorp ii will be implemented into uk law before brexit. September 2018 pension briefing the new directive on occupational pension schemes iorp ii must be implemented in national law by midjanuary 2019.
This practice note looks at the directive on the activities and supervision of institutions for retirement provision iorps, also known as the iorp ii directive, which was implemented into uk law on january 2019 building on the original iorp directive adopted in june 2003, which set out a. Those occupational pension savings regulated by the iorp directive are mostly found in just two countries the united kingdom 5 5. Lcp guide to the new european pensions directive the iorp ii. Iorps and of the risks inherent to these activities and ensure consistency with article 14 of directive 200965ec, article 2 of directive 20098ec and article 12 of directive 201161eu. A new european pensions directive the directive came into force on 1 january 2017 formally directive eu 20162341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision iorps, published in the eu official journal of 23 december 2015. This was the culmination of six months of negotiations and was agreed in june 2016. To improve and modernise regulation for iorps that operate dc plans. The european parliaments economic and monetary affairs econ committee has published its draft report on the revised iorp directive which was proposed by the previous european commission back in march 2014. Jan 24, 2017 written by david eatock 4th edition, in 2014, the european commission proposed a revision iorp ii of the existing institutions for occupational retirement provision iorp directive of 2003, which covers certain occupational pension savings. Hmmm, we cant seem to find the page youre looking for.
Position paper on proposed revision of iorp directive. Official journal of the european union on 14 december 2016. This will now be the basis for discussion and amendments in the european parliament throughout the autumn. Implementing and delegated acts on directive 200341ec of the european parliament and of the council of 3 june 2003 on the activities and supervision of institutions for occupational retirement provision legal basis individual article type of act list of acts 2011 its commission implementing regulation eu no 6432014 of 16 june 2014 laying. Iorp 2 directive developments in the european parliament. Feasibility study for creating an eu pension fund for. Indeed, occupational pension schemes in many member states stem from collective bargaining and thus have a social nature and are undoubtedly regulated by national social and labour law. Proposal for a directive of the european parliament and of the council on the activities and supervision of institutions for occupational retirement provision recast delegations will find attached the text of the abovementioned directive, as provisionally agreed with the european parliament. Member states now have until 12 january 2019 to implement it. The amendments to the existing legislation focus on governance and disclosure.
Directive as last amended by directive 200064ec of the european parliament and of the council oj l 290, 17. European commission press release details page european commission memo brussels, 27 march 2014 see also ip14320 1. Under the current iorp directive a scheme is treated as a crossborder scheme where the relationship between the sponsoring undertaking and members is governed by the social and labour law of a member state other than the home. Draft report econ committee the econ committees rapporteur on the iorp ii directive, brian hayes, has published his longawaited draft report on the legislation. In view of demographic change, sustainability and adequacy, the overall goal should be promotion of occupational pensions. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The iorp ii directive and pensions lexispsl, practical. Directive eu 20162341, even if the iorp is registered or authorised in the eu27. In some member states, selfemployed persons cannot join an iorp unless cer tain requirements, including those imposed by social and labour law, are met. Aug 31, 2012 our story starts with the 2003 iorp directive, although that was itself many years in the making.
Agenda item 5 iorps directive the iorps directive, which was published on 23rd september 2003 is required to be implemented by the member states by 23rd september 2005. The directive requires occupational pension providers to evaluate environmental, social and. The iorp ii directive sets common standards ensuring the soundness of occupational pensions and better protects pension scheme members and beneficiaries, by means of among others. Eiopabos19246 10 july 2019 opinion on the practical. Feasibility study for creating an eu pension fund for researchers prepared for the european commission research directorategeneral. February 2012 confirmed the iorp directive would be revised. Written by david eatock 4th edition, in 2014, the european commission proposed a revision iorp ii of the existing institutions for occupational retirement provision iorp directive of 2003, which covers certain occupational pension savings. Two wellknown reference clients in germany with a pension fund of eur 1 billion total assets have already seen the system and its benefits and will install the first version of ntrol. Take our short questionnaire to see how prepared you are for iorp ii here.
To introduce riskbased supervision for iorps, focus on three main pillars 3. Jun 17, 2011 an iorp operating crossborder is subject to the notification procedure set out in the directive. Iorps directive the iorps directive, which was published on 23rd september 2003 is required to be implemented by the member states by 23rd september 2005. Wed like to use cookies which help us understand how our website is used by our visitors.
The aae notes that the original iorp directive was intended to facilitate the establishment of cross border or pan european iorps, and has not achieved this objective to date, although a few major. In 2003, the european commission created the international occupational pension funds directive also referred to as the iorp directive to establish the fundamental requirements of offering occupational pension funds and its regulations. Directive 2014eu of the european parliament and of the council of 21 may 20 amending directive 200341ec on the activities and supervision of institutions for occupational retirement provision, directive 200965ec on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in. The institutions for occupational retirement provisions directive ii iorp ii. European parliaments proposals positive but work still to be done. Institutions for occupational retirement provision iorp societe.
The directive is the result of almost three years of discussion and negotiation. The iorp directive revision a truly political debate. In contrast to solvency ii directive 20098ec, iorp ii leaves room for national interpretations. Services contracts provisions legislative reform programme downloads.
Much of this has been on the back of doomsday modelling of the costs of defined benefit liabilities if solvency ii directive capital. January 2019 and the first reporting according to eiopa board of. One of the latest developments affecting pension schemes operating with the european economic area eea is eu pensions directive iorp ii. Following todays approval by the council, the text will have to be formally approved by the european parliament. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits crossborder management of pension plans.
As with the iorp i directive, member states can choose to exempt schemes with less than 100 members from much of its scope, but iorp ii further provides that schemes with more than 15 members must be subject to much of the general governance and prudent person investment requirements. Iorp ii and solvency ii should be extended until the quantitative requirements applicable to iorps have been revised. En 3 en iorp ii occupational pensions fund directive eu 20162341. Institutions for occupational retirement provision iorp directive 200341ec law details information about directive 200341ec including date of entry into force and links to summary and consolidated version. Iorp ii is the new european regulation for occupational pension funds, which supersedes the 2003. An iorp operating crossborder is subject to the notification procedure set out in the directive. These rules minimum standards are designed to ensure that occupational pension scheme transactions. Directive eu 20162341 of the european parliament and of the. The revised directive, based on a proposal adopted by the commission in 2014, strengthens and replaces the existing 2003 iorp directive. Iorp ii focuses on the governance of pension schemes and on their communications with individual members. As with much of the recent financial sector legislation to emerge from the financial crisis of 2008, the directive aims to improve governance and accountability in relation to workplace pensions.
Gfsc gibraltar financial services commission iorp ii. Institutions for occupational retirement provision iorp. List of implementing and delegated acts for 200341ec. Recent developments after the implementation of the iorp directive 0 financial marketsfinancial stability, dutch ministry of finance, korte voorhout 7, p. Comments on the proposed iorp directive insurance europe. The revised institutions for occupational retirement provision iorp ii directive entered the. Occupational pension funds or institutions for occupational retirement provision iorps are financial institutions which manage collective retirement schemes for employers, in order to. A pension scheme in the context of the iorp directive is an agreement laying down the pension promise to. This is important since socialsecurity systems are coming under increasing pressure, which means that citizens are likely to increasingly rely on occupational retirement pensions to complement.
Iorp ii update text of revised iorp ii directive agreed and awaiting formal approval from european parliament the european parliament, the council and the commission have agreed on a proposal for a revised iorp ii directive the directive. The key objectives of the revised iorp ii directive are to. Article 123 iorp 2, refers to cross border transfers of pension schemes. Iorp directive pensions and lifetime savings association. Recent developments after the implementation of the iorp directive. Iorp, within the meaning of the directive 200341ec and the life insurance based contractual arrangements directive 200283ec. In 2015 george osborne, then the uk chancellor of the exchequer, decided that those age over 55 could take much more of their pension in cash. Position paper on possible legal inconsistency with eu provisions.
We think that it is essential for the assessment to include a quantitative analysis of the risks being borne by the iorp andor the members. Eu directive on institutions for occupational retirement. It does not include any harmonised solvency rules for occupational pension funds. The eu directive on the activities and supervision of institutions for occupational retirement provision was originally envisaged as a mechanism. By continuing to use this site you are giving us your consent to do this.
1353 598 118 1515 1621 201 582 830 1338 1345 1248 1513 583 357 741 1374 452 694 976 199 911 1218 1257 50 1171 25 1211 1081 215 191 54 357 1453 421 527 1043 786 1482 1