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. In december 2016, the eu adopted a recast version of the iorp directive to encourage longterm investment through. It transforms the directive with extensive new requirements on governance and communications. We outline the evolution of iorp regulation, starting with the directive of 2003, till the approval of the iorp2 in june 2016. 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. Directive eu 20162341 of the european parliament and of the. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits crossborder management of pension plans. Institutions for occupational retirement provision iorp directive 200341ec law details information about directive 200341ec including date of entry into force and links to. Revision to occupational pensions directive iorp ii. Institutions for occupational retirement provision ii. In december 2016, the eu adopted a recast version of the iorp directive to encourage longterm investment through occupational pension funds. Eiopabos19246 10 july 2019 opinion on the practical. Occupational pensions are private, normally prefunded, supplementary pension plans linked to an employment relationship.
We will discuss some key aspects of the directive and the way in which these aspects have been implemented in several eu member states. Comments on the proposed iorp directive insurance europe. And on top of all that, the ecs action plan on sustainable finance looks set to bring in. Pdf new iorp ii directive, effective since 2019, lies down new information requirement on all pension providers. The directive contains only a few provisions on the management structure of an iorp. As part of the implementation of the new iorp ii directive iorps institutions for occupational retirement provision eiopa introduced a set of new reporting requirements. Iorp ii is the new european regulation for occupational pension funds, which supersedes the 2003 iorp. The decree aims to set conditions for crossborder activity of. 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. The revised institutions for occupational retirement provision iorp ii directive entered the official journal of the european union on 14 december 2016. Spain strengthens pension fund supervision, eu iorp ii. The new version of the eu directive on institutions for occupational retirement provision iorp is set to have a profound impact on workplace pensions.
Many b ut not all occupational pensions are regulated at eu level by the directive on institutions for occupational retirement provision o r iorp. Integration of climate risks into portfolio strategy. The institutions for occupational retirement provision directive iorp ii establishes an eu regulatory framework for the pensions sector. Directive is due to be introduced by government later in 2018. Position paper on possible legal inconsistency with eu provisions. The institutions for occupational retirement provisions directive ii iorp ii.
The institutions for occupational retirement provision iorps directive is being. Iorp ii focuses on the governance of pension schemes and on their communications with individual members. The new eu directive on the activities and supervision of institutions for occupational retirement provision iorp ii was adopted in 2016. 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. The documents may be filled in via adobe pdf or microsoft word and once complete should be delivered to all family, friends, and the primary care physician of the individual.
According to the directive, there should be at least a management or supervisory body, but member states are left to decide on how to put this into practice. This directive is to be implemented in accordance with those rights and principles. However, harmonised solvency rules are likely to be raised again in the future revision of the iorp directive that could occur as soon as six years after the iorp2 comes into force. Bny mellon s new report looks at the challenges and opportunities it presents for european pension funds. Position paper on proposed revision of iorp directive actuarial association of europe. Including the occupational retirement provision business of life insurance undertakings subject to article 4 of the. Occupational pension funds operating in the eu are regulated by directive 200341ec, also known as the iorp directive.
These publications can be downloaded free of charge from our website. The directive requires occupational pension providers to evaluate environmental, social. Technical instructions regarding reporting templates for. Contrary to solvency ii for insurers and crdcrr for banks, the current directive follows a nonrisk based approach to the regulatory requirements for pension funds. Directive 200341ec on the activities and supervision of institutions for retirement provision 3 foreword the iorp directive took far too long to become european law. Iorp ii is the new european regulation for occupational pension funds, which supersedes the. This would pose excessive administrative burdens and costs for pension funds, in particular smaller ones. In belgium, in the act on iorps, a system where every iorp is was required to assume. The european insurance and occupational pensions authority eiopa has created two model pension benefit statements to provide practical guidance on how to implement the annual information document that iorps are required to send to their members following the implementation of the iorp ii directive the model statements demonstrate how to provide clear information to members on their pension. These new requirements are addressing the specific data collection needs towards pension funds across europe. Institutions for occupational retirement provision iorp directive. Please note that the activities regulated under the iorp directive are a subset of the pension funds within the scope of the ecbs reporting requirements, which may affect some member states more than others. First, with the iorp directive a first step towards an internal.
Gfsc gibraltar financial services commission iorp ii. An iorp operating crossborder is subject to the notification procedure set out in the directive. Institutions for occupational retirement provision iorp. In contrast to solvency ii directive 20098ec, iorp ii leaves room for national interpretations. Background the iorp ii directive must be transposed into irish law, and the laws of all eu member states, by january 2019. 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.
Learn more about the technology changes that pension funds must undertake to comply with the heightened governance requirements. Directive eu 20162341 of the european parliament eurlex. The european insurance and occupational pensions authority eiopa has created two model pension benefit statements to provide practical guidance on how to implement the annual information document that iorps are required to send to their members following the implementation of the iorp ii directive the model statements demonstrate how to provide clear information to. This does not preclude an iorp from satisfying the. Institutions for occupational retirement provision directive 20162341 is a european union directive designed to create an internal market for occupational retirement provision.
Pdf projections of dc scheme pension benefitsthe case of slovakia. Iorp ii introduces a registration requirement for all schemes that have between 15 and 100 members and. Position paper on possible legal inconsistency with eu provisions on cross border transfers of pension schemes with regards to the establishment of excessive and unjustified majorities of members and beneficiaries left to national legislations art. 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.
Directive srd ii in force from 9 june 2018 and to be incorporated into national law by 10 june 2019. According to the european commission, iorps play a major role in retirement. However, the iorp was since been revised in 2016 in response to financial crisis since 2008. Eiopa report on the iorp ii pension benefit statement. Download a living will, or advance health care directive depending on your state, is a document that allows a person to set their wishes in the chance they can no longer make medical decisions for themselves. It tracked the slow passage of what has become directive 200341ec, the entry of wh ich. 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. The directive provides for eu wide pension scheme standards including. Member states have 24 months to transpose the directive into national law.
The revised institutions for occupational retirement provision iorp ii directive entered the. Position paper on proposed revision of iorp directive. Institutions for occupational retirement provision iorp directive ii in 2016. Fourthly, the directive allows iorps to follow an investment strategy tailored to the characteristics.
The court introduces state liability c39811, hogan directive 200894 must be interpreted as meaning that the fact that the measures taken by ireland subsequent to robins and others have not brought about the result that the plaintiffs would receive in excess of 49% of the value of their. This document is an excerpt from the eurlex website menu. The netherlands senate has enacted legislation dutch to implement the eu directive on institutions for occupational retirement provisions iorp ii. 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. Original article pensions reform in the european union. Institutions for occupational retirement provision iorp societe. A spanish decree spanish aimed at implementing the european union eu directive on the supervision of institutions for the occupational retirement provision iorp ii took effect on 6 feb 2020, but organizations will have until 6 aug 2020 to adjust to the new 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. Institutions for occupational retirement provision. The iorp ii directive will become law in january 2019, bringing about widespread impact on pension funds across the eu with regard to risk management and governance. 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.
Article 123 iorp 2, refers to cross border transfers of pension schemes, provides. 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. 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 iorp ii introduces amongst other information requirements the obligation for iorps to draw up a pension benefit statement, which should be made available to. It states that pension funds risk assessment should include risks related to climate change and risks related to the depreciation of assets due to regulatory change stranded assets. On 27 march 2014, the european commission proposed a revision.
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