Occupational pensions: Revision of the Institutions for Occupational Retirement Provision Directive (IORP II)

Briefing 27-09-2016

In 2014, the European Commission proposed a revision (‘IORP II’) of the existing Institutions for Occupational Retirement Provision (IORP) Directive of 2003, which covers certain occupational pension savings. These are overwhelmingly in the United Kingdom (55.9% of IORP assets) and the Netherlands (30.7%). The proposed revision aims to improve the governance, risk management, transparency and information provision of IORPs and help increase cross-border IORP activity, strengthening the single market. The proposal did not include new prudential rules (i.e. capital requirements) for IORPs following a long and controversial debate. Stakeholders generally welcomed the focus of the proposal and the lack of new prudential rules, but felt the revision was overly detailed and prescriptive and did not respect national competences, nor reflect the variety of IORPs and their position as social (not just financial) entities. Trilogue discussions have now concluded and a first-reading plenary vote is expected to take place in November. This briefing updates an earlier version, from March 2016: PE 579.101. A more recent edition of this document is available. Find it by searching by the document title at this address: http://www.europarl.europa.eu/thinktank/en/home.html