AEIP underlines the potential of paritarian occupational pensions in securing financial retirement stability for European citizens
The European Association of Paritarian Institutions (AEIP) has responded to the European Commission’s call for evidence on the Savings and Investment Union emphasizing the critical role of paritarian occupational pensions in strengthening Europe’s savings and investment landscape.
AEIP welcomes the initiative’s objective of leveraging Europe’s private savings to support broader EU economic and social goals. To this end, AEIP urges the EU to focus on increasing coverage and strengthening paritarian occupational pensions. This can be achieved by reinforcing industrial relations and enhancing the role of social partners in shaping pension policies through collective agreements, which could lead to an increase in mandatory or quasi-mandatory occupational pension plans. Expanding occupational pensions would offer a more sustainable and equitable approach to securing Europeans’ financial futures in retirement while upholding the European social model.
Simone Miotto, the Executive Director of AEIP said:
“Occupational pensions play an increasingly important role in securing financial stability for European citizens. The European Commission should encourage this positive trend by recognizing the unique nature of these pension schemes. Since they are deeply integrated within national labour and social security systems, EU policies must respect national competencies and the diversity of pension systems across Member States. Paritarian pension funds ensure good governance, foster transparency, and uphold compliance with the prudent person rule, while guaranteeing employer contributions. These principles are fundamental in strengthening trust and confidence in long-term financial planning.”
A well-functioning Capital Markets Union (CMU) can provide better access to diverse sources of capital across the EU, helping paritarian institutions to reduce costs, improve portfolio performance, and optimize risk management. This, in turn, leads to greater social protection benefits for fund members. In its response, AEIP underscores that EU policymakers must recognize the specificities of paritarian pension funds and foster a financial environment that attracts targeted investments within the EU single market. However, pension funds should not be pressured to prioritize EU competitiveness at the expense of their primary social mission—delivering adequate and sustainable pensions for European workers.
AEIP remains committed to engaging in constructive dialogue with the European Commission to identify initiatives that attract more investments while safeguarding the long-term objectives of pension funds and ensuring good pension outcomes for members and beneficiaries.
To read our full input please see here.