Occupational Pensions

Directive 2003/41/EC of the European Parliament and the Council on the activities and supervision of institutions for occupational retirement provision (IORPs) was adopted on 3 June 2003. Its objective is to allow pension funds to benefit from the Internal Market principles of free movement of capital and free provision of services. At the same time, the Directive seeks to establish rigorous prudential standards ensuring that pension fund members and beneficiaries are properly protected.

The directive allows pension funds to manage occupational pension schemes for companies established in another Member State and allow a pan-european company to have only one pension fund for all its subsidiaries all over Europe.

However, creation of an Internal Market also requires the removal of fiscal barriers and barriers to the transferability of pension rights. Recent initiatives have also been taken by the Commission in this respect (further information on the websites Taxation and the Customs Union and Employment & Social Affairs