Today, November 24th 2016, in Strasbourg, MEPs endorsed an informal agreement with the EU Council and Commission and Council on changes to the “Institutions for Occupational Retirement Provision” (IORPs) Directive by 512 votes to 70. The Directive, from 2003, covers certain occupational pension savings. IORPs hold assets worth €2.5 trillion on behalf of around 75 million Europeans and are found mainly in the United Kingdom (55.9 % of IORP assets) and the Netherlands (30.7 %). Around a further 10 % of IORP assets are in Germany (4.5 %), Italy (2.8 %) and Ireland (2.4 %).
Changes were proposed in order to improve the governance, risk management, transparency and information provision of IORPs, as well as help increase cross-border IORP activity. One of the revised Directive’s key features is the requirement for European occupational pensions to take environmental, social and governance (ESG) issues into account.
The new measures also give added protection for pension scheme members and beneficiaries by improving their access to information, including a Pension Benefit Statement. This document gives members “relevant and appropriate information” about the scheme.
To read the European Parliament’s full press release, please click here.