EU Pensions Directive ("IORP II")
Legislative and regulatory updates present both risks and opportunities for pension scheme management, on both a local and multinational basis.
Take our short questionnaire to see how prepared you are for IORP II here.
One of the latest developments affecting pension schemes operating with the European Economic Area (EEA) is EU Pensions Directive ("IORP II"). IORP II was finalised in January 2017. Member States now have until 12 January 2019 to implement it.
The amendments to the existing legislation focus on governance and disclosure. Although there are many references to the adoption of a proportionate approach there are several provisions that would impose new requirements on schemes. The impact will depend on exactly how the requirements are translated into local legislation, but the cost of compliance could be particularly significant for smaller schemes. Many larger schemes will already be applying many of the elements as best practice, and many multinationals are seeking to adopt similar expectations of their local plans globally.
How prepared are you?
IORP II introduces a range of requirements relating to:
regarding occupational retirement plan arrangements in the European Union.
The requirements apply to local regulators, who then specify the details required in their jurisdiction.
The degree of detail that each local regulator will require has yet to be defined, as regulators are able to apply the requirements in a manner that is proportionate to the size, nature, scale and complexity of IORPs in their jurisdiction. Local regulators may, of course, add requirements beyond those mentioned in IORP II.