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Institutions for Occupational Retirement Provision (IORPs)

Occupational pension funds in the EU benefit from the principles of free movement of capital and free provision of services. This means, for example, that:

  • pension funds can manage occupational pension schemes for companies established in another EU country
  • pan-European companies can have a single pension fund for all their subsidiaries throughout Europe

This freedom is counterbalanced by rigorous prudential standards, ensuring that pension fund members and beneficiaries are properly protected.

The rules governing the activities of institutions providing occupational pensions (IORPS) in all EU countries are set out in Directive 2003/41/EC.

Revision of the IORP Directive

On 27 March 2014 the European Commission adopted a legislative proposal for new rules on occupational pension funds (IORPs). The proposal aims at improving governance and transparency of these funds in Europe, promoting cross-border activity, and helping long-term investment.

2003 IORP Directive

Implementing technical standards

On 16 June 2014, the Commission adopted Implementing Regulation 643/2014 laying down implementing technical standards with regard to the reporting of national provisions of prudential nature relevant to the field of occupational pension schemes according to Directive 2003/41/EC of the European Parliament and of the Council.

Commission report on some key aspects concerning the IORP Directive

The IORP Directive explicitly sets out reporting requirements for the Commission on four key aspects. Article 15(6) requires a regular report on the rules regarding the calculation of technical provisions. Article 21(4) requires a one-off report on the application of investment rules, progress achieved in the adaptation of national supervisory systems and cross-border custodianship. A Report from the Commission on these key aspects was adopted on 30 April 2009 with a view to fulfilling this reporting obligation.

Text of the directive

Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (IORPs).