AEIP calls for an IORP framework that better aligns with the role and characteristics of paritarian pension funds
The European Association of Paritarian Institutions (AEIP) today published its position paper on the European Commission’s Supplementary Pensions Package. In its paper, AEIP underlines that the review of the IORP II Directive should be better aligned with the nature, role, and governance of paritarian institutions, which are jointly managed by representatives of employers and employees on an equal basis.
While supporting the objectives of the Supplementary Pensions Package, AEIP emphasises the need for a more balanced and proportionate framework for IORPs, the preservation of the role of social partners, and greater recognition of the social and collective features of occupational pensions.
Given the diversity of national pension systems and other arrangements across Member States, it is also essential to retain the current minimum harmonisation approach of the IORP II Directive, without introducing delegated acts. In addition, AEIP expresses concerns about the proposed communication and disclosure requirements, which risk imposing higher administrative costs and burdens on IORPs, without delivering clear added value to EU pension savers.
Furthermore, AEIP supports the proposed prudent person principle, with sufficient flexibility for IORPs to invest in alternative assets. This could encourage occupational pension funds to further diversify their investment portfolios and enhance long-term returns for their members and beneficiaries.
To read our full press release, please see here.
To read our position paper, please see here.