PensionsEurope Press Release
Brussels, 22 May 2025
PensionsEurope Welcomes ECA Report on EU Pensions: Calls for Pragmatic and Respectful Reforms
PensionsEurope welcomes the publication of the European Court of Auditors’ (ECA) Special Report “Developing Supplementary Pensions in the EU”, alongside the responses from the European Commission and EIOPA. The report provides a valuable contribution to the ongoing debate on how to strengthen workplace and personal pensions across the EU and build more sustainable retirement systems.
We share the report’s core conclusion: despite EU-level initiatives, the development of cross-border occupational pensions and the uptake of the Pan-European Personal Pension Product (PEPP) remain very limited. These findings reflect long-standing concerns voiced by PensionsEurope and our members.
A Realistic Assessment of Cross-Border and PEPP Challenges
The ECA’s acknowledgment that key obstacles lie in national social and labour laws—rather than solely in EU legislation—is particularly important. This is a vital starting point for any actions as it is unrealistic to expect any meaningful improvements without considering these national competences and complexities.
We also note the report’s frank assessment of the PEPP: its uptake has been extremely limited, and its design—particularly the lack of tax incentives and the rigid fee cap—deters providers and savers alike. We believe future decisions on PEPP must be guided by realistic expectations and full stakeholder engagement. We agree that there is urgency to review the PEPP and support the plan of the European Commission to start already in 2025.
The ECA report takes a critical stance on the impact assessment on IORP II revision and the fact that legislative changes were made without supporting evidence. The report also criticises the impact assessments on PEPP and one can note that while it envisaged up to 700 billion euros in PEPPs by 2030 the reality is, as the report points out, that there were in 2024 only 12 million euros actually saved in PEPPs. The ECA importantly points out that since the IORP II revision is upcoming and the evaluation of the PEPP Regulation is planned the Commission will have an opportunity to critically assess again the merits and the potential impact of a legislative initiative in this field. PensionsEurope agrees as it is vitally important that the impacts of proposed changes are assessed properly and taken seriously before changing legislation.
Supervisory Convergence: Need for Balance
EIOPA has strong commitment to supervisory convergence and greater transparency. However, as EIOPA itself notes, the diversity of national systems must be respected. Any strengthening of supervisory tools must be proportionate, and avoid overburdening national actors or pension funds.
PensionsEurope does not support further centralisation of supervision at the EU level and especially without clear added value. Effective supervison is certainly essential, but must complement, not override, well-functioning national supervisory frameworks.
Support for Transparency and Better Information
We support efforts to improve transparency on pension costs, returns, and entitlements. Pension dashboards, tracking systems, and better data can empower citizens and support adequacy. However, data collection requirements must be feasible, cost-effective, and reflect the wide variety of schemes across Europe and respect the diversity of pension systems across Europe and the competences of Member States in deciding how diffferent pension information can be shared and provided.
Time for Targeted and Respectful Reform
The upcoming reviews of the IORP II Directive and PEPP Regulation are an opportunity to improve the EU pensions framework. PensionsEurope urges policymakers to:
- Respect the diversity of Member States’ pension systems;
- Strengthen rather than undermine social dialogue and the role of social partners;
- Focus on pragmatic solutions such as auto-enrolment, financial literacy, and better pension communication tools;
- Avoid regulatory duplication or unnecessary burdens.
Matti Leppälä, Secretary General of PensionsEurope, said:
“We appreciate the very clear and strong evaluation the ECA has made of many important issues important in supplementary pensions. We look forward to engaging constructively with the European institutions to ensure that future reforms are realistic, practical, proportionate, and supportive of strong, sustainable supplementary pensions for the people in Europe.”
