Commenting on the recent trialogue agreement on the Institutions for Occupational Retirement Provision (IORP) Directive reached by the EU institutions, Nicolas Jeanmart, head of personal insurance, general insurance & macroeconomics at Insurance Europe, said:
“Occupational pensions play a key role in providing adequate retirement income to EU workers. It is therefore important that all workers have access to quality occupational pensions, managed in a professional and transparent way, irrespective of whether they are provided by IORPs or by insurers, both significant providers of occupational pensions.
“In particular, it is important for members and beneficiaries to understand the nature of the product they are offered and the risks they face. It is good to see that the trialogue agreement will require IORPs to ensure a good level of transparency contributing to those objectives.
“That being said, the trialogue agreement is concerning because it does not ensure a consistent regulatory response to cases of under-funding of IORPs’ cross-border activities, entailing a risk of regulatory arbitrage. It is therefore of vital importance that member states make the right decisions when implementing the directive in order to protect EU citizens’ occupational pensions.”