The new version of the EU directive on Institutions for Occupational Retirement Provision (IORP) is set to have a profound impact on workplace pensions. BNY Mellon’s new report looks at the challenges and opportunities it presents for European pension funds.
IORP II reflects European regulators’ desire to create a stable, efficient and effective pension environment. It aims to enhance pension schemes’ governance, risk management and communications. The directive seeks to remove barriers to cross-border pension provision. It also places new emphasis on ESG-related risks.
“For companies with pension schemes in multiple countries in the EU, IORP II presents potential cross-border opportunities.”Pieter Strik, Product Manager, BNY Mellon
EU member states had until 13 January 2019 to transpose IORP II into national law. While the degree of change will vary by country, schemes across Europe ought to familiarise themselves with the directive to ensure a smooth transition to key requirements.
BNY Mellon’s new report, IORP II: Challenges and Opportunites, addresses:
“It is important to understand that IORP II is a directive and not a regulation. A directive must be legislated by each member state and therefore approaches may be taken that undermine its original objectives.”Hans Van Meerten, Member, EOIPA occupational pensions stakeholder group
Ambitious and wide-reaching, IORP II is likely to herald further changes for the European pension industry. With BNY Mellon’s support, schemes will be well-placed to achieve their strategic goals as the European pension landscape continues to shift.
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