Supplementary pensions package: PEPP and IORP

Key Points

The EESC:

• recognises the benefits of a multi-pillar pensions system, and believes that supplementary pensions should not justify weakening public pensions, ensuring that all citizens across the EU can retire with dignity, security and adequate income. A holistic approach is necessary at the appropriate level - national or European -, that should include improving both the labour market and the supplementary pensions system;
• recommends appropriate measures to strengthen participatory governance and promote the involvement of social partners, preserving their freedom to negotiate and in respect of the diversity of systems in the EU;
• recommends specific amendments to the IORP Directive to reduce fragmentation, increase comparability and transparency, and ensure trust of scheme members;
• recommends specific amendments to the PEPP Regulation including on information and advice, the role of EIOPA and on cross-border transfers.
• recommends measures for a better gender balance and to strengthen public confidence on  pension products and that PEPPs remain individual, not allowing group purchasing;
• urges the co‑legislators to consider rewording the ‘prudent person’ principle referred to in the IORP Directive, to strike the right balance between investment risk and guaranteeing scheme contributions;
• recommends that automatic enrolment be the result of strengthened social dialogue and collective bargaining, where appropriate, preserving the freedom of social partners to negotiate, design and decide on automatic enrolment;
• recommends to set up a monitoring Committee by the European Commission to effectively monitor the progress of supplementary pensions. It should involve public authorities, social partners and civil society organisations. Its work should inform future regulatory changes and feed into the work of the European Semester and the Council;
• recommends measures to mitigate potential effects on sustainability of pensions and on poverty and inequality;
• recommends completing the work being carried out to coordinate the digitalisation of European social security systems;
• underlines the need for financial education supported by user-friendly tracking tools and access to guidance and advice to take decisions.