The key objectives of the revised iorp ii directive are to. 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. 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. Following todays approval by the council, the text will have to be formally approved by the european parliament. February 2012 confirmed the iorp directive would be revised. In some member states, selfemployed persons cannot join an iorp unless cer tain requirements, including those imposed by social and labour law, are met. 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. Services contracts provisions legislative reform programme downloads. However, the iorp was since been revised in 2016 in response to financial crisis since 2008. 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.
Occupational pension funds or institutions for occupational retirement provision iorps are financial institutions which manage collective retirement schemes for employers, in order to. Much of this has been on the back of doomsday modelling of the costs of defined benefit liabilities if solvency ii directive capital. The directive should focus on the activities and the risks borne by the iorp, not on the underlying schemes. The institutions for occupational retirement provisions directive ii iorp ii. Feasibility study for creating an eu pension fund for. List of implementing and delegated acts for 200341ec. 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. Wed like to use cookies which help us understand how our website is used by our visitors.
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 revised institutions for occupational retirement provision iorp ii directive entered the. Institutions for occupational retirement provision iorp. 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. This was the culmination of six months of negotiations and was agreed in june 2016. Iorp ii focuses on the governance of pension schemes and on their communications with individual members. 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. Position paper on possible legal inconsistency with eu provisions. Comments on the proposed iorp directive insurance europe. 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. 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. 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. The amendments to the existing legislation focus on governance and disclosure.
Gfsc gibraltar financial services commission iorp ii. European parliaments proposals positive but work still to be done. A pension scheme in the context of the iorp directive is an agreement laying down the pension promise to. 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. Iorp ii is the new european regulation for occupational pension funds, which supersedes the 2003. 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. The new eu directive on the activities and supervision of institutions for occupational retirement provision iorp ii was adopted in 2016. This has since opened up a range of possibilities for. Hmmm, we cant seem to find the page youre looking for. However, in the view of cbbaeurope, the provisions of the iorp 2 directive. The eu commission has now proposed that the 2003 iorp directive be revised to address these issues. 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. Aug 31, 2012 our story starts with the 2003 iorp directive, although that was itself many years in the making.
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 directive pensions and lifetime savings association. Directive eu 20162341 of the european parliament and of the. 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. To simplify legal, regulatory and administrative requirements for settingup crossborder pension funds 2. Article 123 iorp 2, refers to cross border transfers of pension schemes. Those occupational pension savings regulated by the iorp directive are mostly found in just two countries the united kingdom 5 5. 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. En 3 en iorp ii occupational pensions fund directive eu 20162341. By continuing to use this site you are giving us your consent to do this. Institutions for occupational retirement provision directive 200341ec is a european union directive designed to create an internal market for occupational retirement provision. 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 contrast to solvency ii directive 20098ec, iorp ii leaves room for national interpretations. This directive is to be implemented in accordance with those rights and principles.
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. Iorp, within the meaning of the directive 200341ec and the life insurance based contractual arrangements directive 200283ec. Take our short questionnaire to see how prepared you are for iorp ii here. The revised directive, based on a proposal adopted by the commission in 2014, strengthens and replaces the existing 2003 iorp directive. Eu directive on institutions for occupational retirement provision iorp ii. 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. European commission press release details page european commission memo brussels, 27 march 2014 see also ip14320 1. 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. One of the latest developments affecting pension schemes operating with the european economic area eea is eu pensions directive iorp ii. An iorp operating crossborder is subject to the notification procedure set out in the directive. 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. 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. 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. Institutions for occupational retirement provision iorp societe.
Directive eu 20162341, even if the iorp is registered or authorised in the eu27. The eu directive on the activities and supervision of institutions for occupational retirement provision was originally envisaged as a mechanism. These rules minimum standards are designed to ensure that occupational pension scheme transactions. 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. It does not include any harmonised solvency rules for occupational pension funds. The directive requires occupational pension providers to evaluate environmental, social and. Member states now have until 12 january 2019 to implement it. Lcp guide to the new european pensions directive the iorp ii. Recent developments after the implementation of the iorp directive 0 financial marketsfinancial stability, dutch ministry of finance, korte voorhout 7, p. 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. The authority will provide technical support to the department of employment affairs and social protection in transposing the directive into law by the eu deadline of january 2019.
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. 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. 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. Eu directive on institutions for occupational retirement. 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. Recent developments after the implementation of the iorp directive. The iorp directive revision a truly political debate. 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 directive harmonises basic prudential rules governing the operation of iorps. Revision to occupational pensions directive iorp ii. Iorp 2 directive developments in the european parliament.
The iorp ii directive and pensions lexispsl, practical. The purpose of the 2003 iorp directive was to establish a system of regulation of iorps or. Position paper on proposed revision of iorp directive actuarial association of europe. To improve and modernise regulation for iorps that operate dc plans. Institutions for occupational retirement provision directive. This will now be the basis for discussion and amendments in the european parliament throughout the autumn. A new european pensions directive the directive came into force in january 2017.
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. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits crossborder management of pension plans. Position paper on proposed revision of iorp directive. 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 pan. To introduce riskbased supervision for iorps, focus on three main pillars 3.
The gfsc is setting up a working group to further discuss the implementation of iorp ii in gibraltar. September 2018 pension briefing the new directive on occupational pension schemes iorp ii must be implemented in national law by midjanuary 2019. You can find out more about cookies in our cookie policy. Official journal of the european union on 14 december 2016. 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. Iorp ii and solvency ii should be extended until the quantitative requirements applicable to iorps have been revised. 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. 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. Jun 17, 2011 an iorp operating crossborder is subject to the notification procedure set out in the directive. Directive as last amended by directive 200064ec of the european parliament and of the council oj l 290, 17. Institutions for occupational retirement provision. January 2019 and the first reporting according to eiopa board of.
1371 2 725 337 169 780 999 1287 447 758 513 610 1322 1559 1579 257 321 225 1067 799 1592 739 1480 846 518 692 311 991 43 1492 364 654 324 658 186 1116 885 969 677 593 975 1420 1449 290 761 333 735