The European Commission recently published a targeted consultation on supplementary pensions. This consultation focuses, among other things, on Pension Tracking Systems, pension dashboards, Auto-Enrollment, the Pan-European Pension Product (PEPP) and the Pension Institutions Directive (IORP). With this consultation, the Commission wants to identify how pension systems in Europe can be strengthened. From DUFAS, we responded to the consultation on behalf of the industry.
For DUFAS, the key point is that the European legislative framework must be designed in such a way that member states retain sufficient room to develop their own pension systems. The EU can play a stimulating role here by sharing good examples and best practices. The success of auto-enrolment in the Netherlands shows that a well-designed system can achieve broad participation. This mobilizes money for the capital market while people build up old-age provision.
The Pan-European Pension Product (PEPP) can be a useful tool to strengthen the third pillar of the pension system. In doing so, we emphasize that flexibility is essential. The product must be able to respond to the diverse wishes and needs of participants in different member states. In addition, it is important that PEPP remains complementary to existing national schemes, without creating additional complexity.
Regarding the revision of the IORP Directive, we advocate a careful approach. Adjustments should not lead to unnecessary disruption of existing pension systems, which often function well within their national context.
