IORPs: will my children have a pension?

On 27th March 2014, the European Commission adopted a legislative proposal for new rules on Institutions for Occupational Retirement Provision, or 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.

Different categories of stakeholders would be affected by the new rules: first of all citizens in general but in particular those who are mobile across borders in the course of their careers.

Multinational companies would also benefit from the consolidation of their existing pension schemes (possibly in different Member States) into one occupational pension fund.

Member States would benefit because well-governed occupational pension funds, and wider geographic coverage, are expected to reduce some of the fiscal pressure on state pension systems.

Finally, employers, including SMEs, are expected to benefit through the reduced cost of joining an existing occupational pension fund. The EC Proposal will be discussed in the Parliament this autumn. This seminar has the objective to gather representatives from different sectors (academic and financial sectors, regulators and youth organizations) in order to launch a debate in view of the next legislative steps. Among the speakers, two representatives of youth organisations are foreseen in the programme. This is because ALDE wants an IORP that contributes to good pension provisions for present as well as future generations, so giving them a voice in the debate is a first important step.