The new iorp directive, which emerged from the eus trilogue negotiations on 30 june 2016, will introduce new governance and disclosure requirements for occupational pension plans within the eu. Iorp ii directive and you can read our further remarks about the iorp ii directive here. On december 8 th, 2016 the eu adopted a new regulation regarding pension funds, the iorp ii directive the successor of the institutions for occupational retirement provision directive. To introduce riskbased supervision for iorps, focus on three main pillars 3. Revision to occupational pensions directive iorp ii. The directive harmonises basic prudential rules governing the operation of iorps. The directive, established by the european securities and markets authority esma, is a major part of the eus broader goal for a single digital market strategy and requires firms to produce their annual returns in a machinereadable format, by providing them in inline xbrl. The iorp directive was originally issued in june 2003 and was designed. The eu commission has now proposed that the 2003 iorp directive be revised to address these issues. Schemes with 1599 members were expected to read the. Institutions for occupational retirement provision iorp directive 200341ec law details information about directive 200341ec including date of entry into force and links to summary and consolidated version. Draft report econ committee the econ committees rapporteur on the iorp ii directive, brian hayes, has published his longawaited draft report on the legislation. This was the culmination of six months of negotiations and was agreed in june 2016.
The european parliament, the council and the commission have agreed on a proposal for a revised iorp ii directive the directive. Occupational retirement provisions directive iorp 2. A pension scheme in the context of the iorp directive is an agreement laying down the pension promise to. On 23 december 2016, the longawaited iorp ii directive was published in the official journal of the european union. Proposed revision of iorp directive actuarial association of europe i 11 introduction iorp i the current iorp directive passed in 2003 as a first step towards creating an internal market for. The new eu directive on the activities and supervision of institutions for occupational retirement provision iorp ii was adopted in 2016. Modernized rules for occupational pension funds in europe on january 12, 2017, the longawaited iorp ii directive entered into force. Iorp directive the eu has recently approved a major revision of the eu legislation on workplace pension schemes the directive on institutions for occupational retirement provision. The proposed directive contains extensive new requirements on governance and member communications for iorps. Eu directive on institutions for occupational retirement. However, there has been a delay in making the required regulations and so.
With the iorp ii directive coming to force starting january 2019. The original pensions directive also known as iorp i introduced a number of new rules for iorps broadly, occupational pension schemes. On 27 march 2014 the eu commission published its proposal for a recast version of the iorp directive 200341ec. Time for change iorp ii implementation across europe. It carries forward many of the existing provisions of the 2003 iorp directive and includes new provisions focusing on governance, communications and reporting requirements, as well as making changes to the crossborder pensions regime and placing an emphasis on environmental, social. Directive 20162341eu iorp ii directive better regulation. 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. February 2012 confirmed the iorp directive would be revised. One of the latest developments affecting pension schemes operating with the european economic area eea is eu pensions directive iorp ii.
Iorps directive the iorps directive, which was published on 23rd september 2003 is required to be implemented by the member states by 23rd september 2005. In my view the provisions of the occupational pension schemes governance. Aug 31, 2012 our story starts with the 2003 iorp directive, although that was itself many years in the making. The recitals of the directive clarify the position on this where the sponsoring undertaking and the iorp are located in the same member state, the mere fact that members or beneficiaries of a.
Directive eu 20162341, on the activities and supervision of institutions for occupational retirement provision iorp ii came into force on 12 january 2017 and must be implemented into irish law by january 2019. In our view, the detail of what is addressed in this assessment should be left to the iorp, subject to high level requirements set out in the directive and developed by national competent authorities. The directive should focus on the activities and the risks borne by the iorp, not on the underlying schemes. In our view, the detail of what is addressed in this assessment should be left to the iorp, subject to high level requirements set out. The proposed revision aims to improve the governance, risk management, transparency. Hmmm, we cant seem to find the page youre looking for. These rules minimum standards are designed to ensure that occupational pension scheme transactions. The authority will provide technical support to the department of employment affairs and social protection in transposing the directive into law by the eu deadline of january 2019. 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. Over two years after initially being proposed, the new iorps directive 20162341ec iorps ii was adopted by the european parliament on 14 december 2016 and came.
This will affect occupational pension schemes across all member states. Iorp ii directive to harmonize supervision of pension funds. Eu directive on institutions for occupational retirement provision iorp ii by squire patton boggs on december 21, 2016 posted in uk pensions on 8 december 2016 the european. As part of a drive to increase financial stability across the eea, the iorp ii directive will increase accuracy and harmonisation of reporting for pension funds. Iorps and of the risks inherent to these activities and ensure consistency with article 14 of directive 200965ec, article 2 of directive 20098ec and article 12 of directive 201161eu. To improve and modernise regulation for iorps that operate dc plans. Brokers ireland recently met with the pensions authority to discuss the transition of iorp ii. The directive is the result of almost three years of discussion and negotiation. However, the proposals to revise the iorp directive need to better balance measures that would make a real difference in crossborder provision and those aiming to ensure safety and security.
Matters for pension trustees to consider ahead of the transposition of the iorp ii directive in the coming months. Xbrl reporting solvency ii, iorp ii, crd4, srb, esmaesef. Institutions for occupational retirement provision directive 20162341 is a european union directive designed to create an internal market for occupational retirement provision. The purpose of the 2003 iorp directive was to establish a system of regulation of iorps or. Directive eu 20162341 of the european parliament and of the council show full title. How the eu directive has reshaped the pensions industry. European union passes iorp ii directive insights jones day. This will now be the basis for discussion and amendments in the european parliament throughout the autumn. As with the iorp i directive, member states can choose to exempt schemes with less than 100 members from much of its scope, but iorp ii further provides that schemes with more than 15 members must be subject to much of the general governance and prudent person investment requirements.
The life insurance directive will soon be replaced by solvency ii in the member states. Our story starts with the 2003 iorp directive, although that was itself many years in the making. The uk pensions awards now in their 23rd year remain the industrys most prestigious accolades. The eu revised directive on the activities and supervision of institutions for occupational retirement provision iorp ii was adopted and published in december 2016. Written by david eatock 4th edition, in 2014, the european commission proposed a revision iorp ii of the existing institutions for occupational retirement provision iorp directive of. An iorp shall notify its intention to carry out crossborder activity to the competent authority of the home member state. Feasibility study for creating an eu pension fund for researchers.
Occupational retirement provisions directive iorp 2 transposition status. Institutions for occupational retirement provision directive. Iorp ii requires all pension funds to report in xbrl format extensible business reporting language, which some of them might already be familiar with. Comments on the proposed iorp directive insurance europe. Lcp guide to the new european pensions directive the iorp ii. Dec 21, 2016 the recitals of the directive clarify the position on this where the sponsoring undertaking and the iorp are located in the same member state, the mere fact that members or beneficiaries of a.
The authority will provide technical support to the department. They shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members and have done the most to improve this over the past year. An eu directive on occupational pension schemes, called iorp ii, was due to be implemented into irish law by th january 2019. Jun 17, 2011 an iorp operating crossborder is subject to the notification procedure set out in the directive. The main new elements in iorp ii have to do with the rules pertaining to crossborder activity. Moreover, in relation to multiemployer we have explored arrangements. Member states now have until 12 january 2019 to implement it. Institutions for occupational retirement provision. Updated industry parameters and liability costs march 2015 7 facility abandonment cost parameter. As such, it is easy to see which parts of the proposed directive are new. The upcoming trialogue discussions on the revised directive on institutions for occupational retirement provision iorp ii between the european institutions provide an important opportunity to ensure appropriate safeguards for iorps members and beneficiaries, according to insurance europe, the european insurance and reinsurance federation. To simplify legal, regulatory and administrative requirements for settingup crossborder pension funds 2. A new european pensions directive the directive came into force on 1 january 2017 formally directive eu 20162341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision iorps, published in the eu official journal of 23 december 2015.
Iorp ii trialogues offer opportunity to safeguard members and. List of implementing and delegated acts for 200341ec. Directive eu 20162341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision iorps recast text with eea relevance. At the same time, the iorp directive is being revised. Pdf icon g9 iorp ii outcome joint statement november 2016. Iorp ii is an updated version of the existing iorp directive implemented back in 2003 that is designed broadly to improve the management of pension schemes by implementing stricter rules around. Pensionseurope shares the goal of the socalled iorp ii directive to facilitate the. Directive eu 20162341 of the european parliament and of. Managing your solvency ii and preparing for the new pension funds iorp reporting requirements, may look scary at first. Implementing and delegated acts on directive 200341ec of the european parliament and of the council of 3 june 2003 on the activities and supervision of institutions for occupational retirement provision legal basis individual article type of act list of acts 2011 its commission implementing regulation eu no 6432014 of 16 june 2014 laying. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits crossborder management of pension plans. We are strongly of the view that the directive should require that the actuarial. Directive eu 20162341 of the european parliament and of the council of 14 december 2016 on the activities and supervision of institutions for occupational retirement provision iorps text with eea relevance oj l 354, 23. Official journal publicationby mayer brown international llprelated contentdirective 20162341eu on the activities and supervision of institutions for occupational retirement provision.
We have focused on the analysis of targeted registered cross border pension funds based on the iorp directive and of relevant life insurance based pension arrangements which could fit researchers needs. Proposal for a directive of the european parliament and of the council on the activities and supervision of institutions for occupational retirement provision recast delegations will find attached the text of the abovementioned directive, as provisionally agreed with the european parliament. Iorp ii, as it is known, was finalised in january 2017. Pension funds reporting solution iorp ii directive regtech. Iorp is listed in the worlds largest and most authoritative dictionary database of abbreviations and acronyms. Directive eu 20162341 on the activities and supervision of institutions for occupational retirement provision iorp ii entered into force on 12 january 2017. In view of demographic change, sustainability and adequacy, the overall goal should be promotion of occupational pensions. An iorp proposing to carry out crossborder activity and to accept sponsorship from a sponsoring undertaking shall be subject to prior authorisation by the relevant competent authority of its home member state. Iorp ii and solvency ii should be extended until the quantitative requirements applicable to iorps have been revised. The iorp directive took far too long to become european law. Institutions for occupational retirement provision iorp directive 200341ec law details information about directive 200341ec including date of entry into force and links to summary and consolidated.
Implemented in the uk through the pensions act 2004, these new rules included the statutory funding objective and enhanced supervisory powers for the new regulator, tpr, from 6 april 2005. Find, read and cite all the research you need on researchgate. March 2011, call for advice from the european insurance and occupational pensions authority eiopa sought advice on how to improve. A directive of the european parliament and of the council of the european union on the activities and supervision of iorps. The purpose of the 2003 iorp directive was to establish a system of regulation of iorps or occupational pension funds that was common across the european union subsequently adopted by european economic area eea countries of norway, iceland and liechtenstein. The directive was intended as a first step in developing an internal market for. Our dedicated hub will provide up to date thinking on how coronavirus covid19 is impacting pensions, investment and insurance markets. Iorp 2 directive developments in the european parliament. The council of the european union has reached an agreement with the eu parliament on the revised eu directive for. Colour palette for powerpoint presentations dark blue r17 g52 b88 gold. The iorp ii directive is being transposed into irish law in early 2019. But in the work undertaken since the solvency ii framework. The occupational pension schemes eea states regulations 2007 these regulations do what is necessary to implement the parts of the european union directive 200341ec on the activities and supervision of institutions for occupational retirement provision iorp directive which require extension in their application to the. The iorp ii directive stresses that iorps play an important role in the longterm financing of the unions economy and in providing secure retirement benefits for citizens.
An iorp proposing to carry out crossborder activity and to accept sponsorship from a sponsoring undertaking shall be subject to prior authorisation by the relevant competent authority of its home. The amendments to the existing legislation focus on governance and disclosure. Eus iorp ii directive requires pension funds to assess. Comments on the iorp directive introduction the aae published a position paper in november 2015 commenting on the european commissions proposal for revision of the iorp directive, which was. Position paper on proposed revision of iorp directive. On 27 march 2014, the previous european commission published a proposal for a new, revised iorp institution for occupational retirement provision directive. Iorp ii must be transposed by the uk on january 2019.
As part of the implementation of the new iorp ii directive iorps institutions for occupational retirement provision eiopa introduced a set of new reporting requirements for pension funds across. Iorp ii directive ireland new reporting challenges for. Jan 24, 2017 written by david eatock 4th edition, 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. The iorp ii directive sets common standards ensuring the soundness of occupational pensions and better protects pension scheme members and beneficiaries, by means of among others. Iorp ii european directive to harmonise the supervision of pension funds the iorp ii directive introduces new governance and risk management requirements for pension funds in 2019. Comments on the iorp directive introduction the aae published a position paper in november 2015 commenting on the european commissions proposal for revision of the iorp directive, which was published in march 2014, including references to the initial draft report by the econ rapporteur. Institutions for occupational retirement provision iorp. The key objectives of the revised iorp ii directive are to. Iorp ii focuses on the governance of pension schemes and on their communications with individual members.
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