Written by David Eatock (1st 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. These are overwhelmingly in the United Kingdom (55.9% of IORP assets) and the Netherlands (30.7%). The proposed revision aims to improve the governance, risk management, transparency and information provision of IORPs and help increase cross-border IORP activity, strengthening the single market. The proposal did not include new prudential rules (i.e. capital requirements) for IORPs following a long and controversial debate.
Stakeholders have in general welcomed the focus of the proposal and the lack of new prudential rules, but feel the revision is overly detailed and prescriptive and does not respect national competences, nor reflect the variety of IORPs and their position as social (not just financial) entities. The EESC and some national parliaments have made similar comments on the proposal. The Council has agreed on its negotiating mandate, while the ECON Committee is expected to vote on its draft report in early 2016.
December 2015: Occupational pensions: Revision of the Institutions for Occupational Retirement Provision Directive (IORP II) (1st edition)