IORP II Directive

IORP II directive

PensionsEurope shares the goal of the Directive 2016/2341 on the Institutions for Occupational Retirement Provision (IORP II Directive) to facilitate the development of occupational retirement savings and to provide sustainable and adequate occupational pensions to European citizens.

The IORP II Directive sets common standards ensuring the soundness of occupational pensions and adequately protecting pension scheme members and beneficiaries. The 2016 review of the Directive significantly increased these minimum harmonisation standards, introducing, among others:

  • (I) new governance requirements;
  • (II) new rules on IORPs’ own risk assessment;
  • (III) new information requirements, including the introduction of an annual Pension Benefit Statement;
  • (IV) enhanced powers for supervisors;

According to the review clause, by 13 January 2023, the Commission should, after consulting EIOPA, review the IORP II Directive and report on its implementation and effectiveness. However, given the delay in the transposition process in some countries, the Commission services considered that a meaningful and well-substantiated review of the Directive was not feasible within such a short deadline and decided to postpone the timeline of work. On 16 June 2022, the European Commission (EC) sent to EIOPA the Call for Advice (CfA) on the evaluation and review of the IORP II Directive giving them a deadline of 1 October 2023. 

EIOPA consulted on the review during Spring 2023 which PensionsEurope answered to highlight that the IORPII directive should remain a minimum harmonisation framework and that there should be no delegated acts. 

EIOPA sent its technical advice to the Commission on 28 September 2023. EIOPA recommended changes as regards 1) proportionality, 2) liquidity risk, 3) conditions of operation, and conflicts of interest, 4) effective use of data, 5) cross-border activities and transfer, 6) shit from DB to DC, 7) sustainability, 8) diversity and inclusion. 

The Commission started preliminary work on the IORPII directive review but will issue its proposal during the 2024-2029 EC mandate. 

PensionsEurope is engaging with EU policymakers on this important matter.