What is the EC targeted consultation on supplementary pensions?

The present consultation will complement the technical advice provided by EIOPA, along with other work on the main topics covered. It will inform Commission’s policy measures aimed at achieving the objectives set out in the SIU strategy and at addressing the findings of the European Court of Auditors contained in the recently published special report on developing supplementary pensions in the EU. The consultation specifically aims to identify best practices and useful ideas in this area. The aim of any changes would be to ensure availability of solid occupational and personal pension products, possibly suitable for auto-enrolment. This consultation forms part of an outreach strategy that will also comprise workshops with relevant stakeholders, including social partners, civil society, consumers and their organisations, businesses, including SMEs, financial intermediaries, including IORPs, other occupational and personal pension providers and their representative organisations, and the institutions and authorities of the Member States. In its communication of 19 March on the savings and investments union (SIU strategy), the Commission envisages several actions to increase the take-up of supplementary pensions across Europe, improve their return and facilitate pension funds’ long-term investments into the economy, including in innovation. The consultation document is: Targeted consultation on supplementary pensions. Other policy goals might require targeted changes to the EU regulatory framework for supplementary pension provision, namely the Directive (EU) 2016/2341 on the activities and supervision of institutions for occupational retirement provision (the IORP II Directive) and Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (the PEPP Regulation).

The European Commission is seeking views on how to make supplementary pensions more accessible, transparent, and effective for citizens across the European Union. The consultation is looking for industry views on a range of possible measures to support wider participation in occupational and personal pension schemes and to improve the tools available to citizens for tracking, comparing and understanding pension entitlements. The consultation is exploring the potential role of automatic enrolment to boost participation. The consultation is also gathering views on the development of national pension tracking systems and pension dashboards to provide clearer individual information and stronger data for policymaking. The consultation invited stakeholders to comment on the review of the directive on the activities and supervision of Institutions for Occupational Retirement Provision. The EC said that the main aim of this part of the consultation is to explore how streamlining the framework for supplementary pension provision can increase trust, advance better investor returns, while increasing the risk management capacity for doing so, and create more transparency on cost and returns. The consultation will also inform the EC's review of the Pan-European Personal Pension Product framework, with further information sought on the obstacles to uptake of the PEPP and how its broader use could be encouraged. The consultation is collecting information on whether the PEPP regulation should be reviewed to introduce a streamlined and accessible default option, to complement existing Member States’ pay-as-you-go and occupational pension systems. The consultation explores PEPP’s potential role as a default option for workplace auto-enrolment schemes, and whether additional investment options should continue to be offered in addition to the Basic PEPP.

The European Commission’s Targeted Consultation on Supplementary Pensions is a not-to-be-missed moment to strengthen pension systems across the EU and ensure that citizens can build adequate retirement savings. The Commission’s recommendations will cover pension tracking systems, dashboards, auto-enrolment, and two legislative reviews on the IORP II Directive, and the PEPP Regulation. Pension tracking systems and dashboards can increase awareness of retirement savings and possible gaps. EFAMA fully supports the Commission’s promotion of auto-enrolment for occupational pensions and strongly suggests that life-cycle investment strategies be used by default to ensure adequate returns. EFAMA urges the creation of a “PEPP 2.0” that is simple, appealing, and financially sustainable.