On Nov. 20, the European Commission published the Supplementary Pensions Package. This package consists of legislation reviewing both IORP II and PEPP, supplemented by a number of recommendations to member states around auto-enrolment and improving their pension information and tracking systems.
The revision of IORP II focuses on modernizing and strengthening the legal framework to increase efficiency, scalability and confidence in supplementary pensions. Of particular note here are improved disclosure and enhanced supervisory coordination.
For PEPP, the Commission is committed to making the product more attractive and practical: lower thresholds, less administrative burden and more room for integration into national pension systems. The updated framework offers more clarity and flexibility for providers. From an asset management perspective, it is interesting to explore the extent to which PEPP products can complement existing offerings, although it remains to be seen whether Dutch providers will actually make use of them.
From DUFAS we are positive about the package, which offers member states more opportunities to develop more robust supplementary pension systems. This fits well with the ambitions of the European Commission to better mobilize savings within the Savings and Investment Union.
More generally, it is important for the Netherlands that this European pension review does not create friction with the recent national pension reform and, from an asset management perspective, its implementation.
The package now goes to the European Council and the European Parliament. There the political process starts: rapporteurships, amendments and eventually trilogues. The first council working group took place in early December; the real work is expected to start in January. In the coming weeks we are working within DUFAS on a joint response, which we will actively introduce to both national and European stakeholders.
This column was written by Marlon Jansen, EU affairs & communications at DUFAS.
