An iorp proposing to carry out crossborder activity and to accept sponsorship from a sponsoring undertaking shall be subject to prior authorisation by the relevant competent authority of its home member state. The revised directive, based on a proposal adopted by the commission in 2014, strengthens and replaces the existing 2003 iorp directive. Jun 17, 2011 an iorp operating crossborder is subject to the notification procedure set out in the directive. Position paper on iorp ii directive proposal draft report econ committee introduction the european regulatory regime for iorps is based on the directive 200341ec. This was the culmination of six months of negotiations and was agreed in june 2016.
Only need report to one states supervisor euwide start up procedure. The 2004 pensions convention 78 june 2004, sheraton skyline hotel, heathrow the eu directive and other key european trends sally dixon, pricewaterhousecoopers outline of presentation. Schemes may still need to prepare for the revised iorp ii. Following todays approval by the council, the text will have to be formally approved by the european parliament. The requirements in this edition of directive 010 are effective on december 22, 2009. Xbrlbased reporting a major challenge for pension funds iorp ii. Looking at the already existing reporting requirements for iorps on the na.
The iorp ii taxonomy can be used from day one with no need for manual. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits crossborder management of pension plans. Directive eu 20162341 of the european parliament and of the. 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. 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. An iorp operating crossborder is subject to the notification procedure set out in the directive. Francoise audag dechamps, federal public service chancery of the prime minister. Iorp ii focuses on the governance of pension schemes and on their communications with individual members. The 2004 pensions convention institute and faculty of. 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. Directive as last amended by directive 200274ec of the european parliament and of the council oj l 270, 8. Proposed revision of iorp directive actuarial association of europe i 11 introduction iorp i the current iorp directive passed in 2003 as a first step towards creating an internal market for occupational retirement provision. 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.
The scope of the directive and its essential health and safety requirements. Iorp ii trialogues offer opportunity to safeguard members. Eu directive on institutions for occupational retirement. 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. Changes to the eus 2003 pensions directive, iorp ii, aims to bring their existing requirements in line with the insurance industries solvency ii directive which is designed to strengthen the internal market by encouraging the development of crossborder pension schemes. Institutions for occupational retirement provision directive. Revision to occupational pensions directive iorp ii. 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. The initial directive contained basic requirements for iorps which could be completed at national level, thus giving flexibility in order to properly cope with the important diversitiy of pension funds in the european union. Occupational pension funds or institutions for occupational retirement provision iorps are financial institutions which manage collective retirement schemes for employers, in order to provide retirement benefits to.
Institutions for occupational retirement provision iorp. The upcoming trialogue discussions on the revised directive on institutions for occupational retirement provision iorp ii between the european institutions provide an important opportunity to ensure appropriate safeguards for iorps members and beneficiaries, according to insurance europe, the european insurance and reinsurance federation. Since the iorp ii directive is the exclusive basis for. However, the existing iorp directive covers some occupational pensions. Directive eu 20162341 of the european parliament eurlex. Aug 31, 2012 our story starts with the 2003 iorp directive, although that was itself many years in the making. For example voluntary application to schemesinstitutions with dual character or to personal pensions recommendation that high standards of governance and supervision should apply to all types of pension schemes recommendation to examine impacts on the operation of article 4. Impact of institutional investors on financial market stability. 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. 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 member state. Since the objective of this directive, namely to create a union legal framework covering iorps, cannot be sufficiently achieved by the member states, but can rather, by reason of the scale or effects of the action, be better achieved at union level, the union may adopt measures, in accordance with the principle of subsidiarity as set out in. Under the committees new definitions a scheme would be treated as a crossborder scheme where it is.
Much of this has been on the back of doomsday modelling of the costs of defined benefit liabilities if solvency ii directive capital requirements were. One of the latest developments affecting pension schemes operating with the european economic area eea is eu pensions directive iorp ii. Member states now have until 12 january 2019 to implement it. Comments on the proposed iorp directive insurance europe. The recitals of the directive clarify the position on this where the sponsoring undertaking and the iorp are located in the same member state, the mere fact that members or beneficiaries of a. Iorp ii extends the existing iorp directive from 12 pages to over 100 pages, changing and introducing new requirements over a whole range of areas. 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. On 27 march 2014, the european commission adopted the draft for a renewal of directive 200341ec, called iorp ii. A new version of the european union directive on institutions for. It remains the only applicable directive until this date. Draft report econ committee the econ committees rapporteur on the iorp ii directive, brian hayes, has published his longawaited draft report on the legislation. A liability assessment is an assessment conducted by a licensee or approval holder to estimate the cost to suspend, abandon, or reclaim a site. These rules minimum standards are designed to ensure that occupational pension scheme transactions. For example voluntary application to schemesinstitutions with dual character or to personal pensions recommendation that high standards of governance and supervision should apply to all types of pension schemes recommendation to.
The new iorp directive, which emerged from the eus trilogue negotiations on 30 june 2016, will introduce new governance and disclosure requirements for occupational pension plans within the eu. Pdf impact of institutional investors on financial. The directive is the result of almost three years of discussion and negotiation. The initial directive contained basic requirements for iorps which could be completed at national level.
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 the european parliament and the council of the european union, having regard to the treaty establishing the european community, and in particular article 472, article 55 and. Introduction a new european pensions directive the directive came into force in january 2017. Directive 4 as amended on october 31, 20171 under executive order 662 pursuant to sections 1ai, 1b, and 8 of executive order 662 of march 20, 2014 blocking property of additional persons contributing to the situation in ukraine the order and 31 c. Occupational retirement provision iorp is set to have a profound. All casing ordered or manufactured after september 22.
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. Eprs occupational pensions members research service page 3 of 12 existing situation in general, there is only limited eulevel competence in the field of pensions, with matters largely for the member states. This will now be the basis for discussion and amendments in the european parliament throughout the autumn. This directive is to be implemented in accordance with those rights and principles. The original pensions directive known as iorp i introduced a number of new rules for iorps broadly, occupational pension schemes. Lcp guide to the new european pensions directive the iorp ii. 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.
To improve and modernise regulation for iorps that operate dc plans. By continuing to use this site you are giving us your consent to do this. 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 xbrl portal illustrates the taxonomy directly in an excelstyle editor, like. This would pose excessive administrative burdens and costs for pension funds, in particular smaller ones. Background to the report the directive acknowledges in its recitals that a genuine internal market for financial services is crucial for economic growth and job creation in the community and that this directive represents a first step on the way to an. Whether or not the new iorp directive will be implemented in the uk is clearly uncertain following the outcome of the recent eu referendum and will depend upon the timing and terms of the uks exit. In addition, some of the measures go too far in harmonizing aspects of occupational.
Position paper on proposed revision of iorp directive. Jun 30, 2016 the revised directive, based on a proposal adopted by the commission in 2014, strengthens and replaces the existing 2003 iorp directive. 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. The key objectives of the revised iorp ii directive are to. Finalised legislative changes to the iorp ii may still apply to the uk before the country makes its departure from the eu. Position paper on proposed revision of iorp directive actuarial association of europe. The directive harmonises basic prudential rules governing the operation of iorps. Institutions for occupational retirement provision directive 200341ec is a european union directive designed to create an internal market for occupational retirement provision. Making the changes required to comply with this legislation is going to be a lot of work for those involved in running pension schemes. Lessons from the european financial stability framework exercise. 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 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.
How the eu directive has reshaped the pensions industry. Pursuant to sections 1ai, 1b, and 8 of executive order 662 of march 20, 2014, blocking property of additional persons contributing to the situation in ukraine the order and 31. The extent if at all to which the uk will need to comply with iorp ii is unlikely to be known until the terms of brexit become much clearer. Institutions for occupational retirement provision iorp societe. The proposed amendments to the iorp directive extend the scope and will significantly impact defined contribution schemes. Commission welcomes deal to improve rules for occupational. The european parliament, the council and the commission have agreed on a proposal for a revised iorp ii directive the directive. 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. 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. An iorp shall notify its intention to carry out crossborder activity to the competent authority of the home member state. European commission press release details page european commission memo brussels, 27 march 2014 see also ip14320 1.
Iorp ii and solvency ii should be extended until the quantitative requirements applicable to iorps have been revised. Dec 21, 2016 eu directive on institutions for occupational retirement provision iorp ii. All casing ordered prior to the issuance of this directive may be used if it conforms to the design factor requirements in section 1. Iorp ii trialogues offer opportunity to safeguard members and. Pdf impact of institutional investors on financial market. It transforms the directive with extensive new requirements on governance and communications. To simplify legal, regulatory and administrative requirements for settingup crossborder pension funds 2. The eu commission has now proposed that the 2003 iorp directive be revised to address these issues.1488 917 1383 19 354 22 677 735 1109 236 264 214 123 1327 610 30 297 406 1478 269 817 909 1174 399 567 639 116 459 1326 917