Commission staff working document - EU legislation, coverage and related initiatives - Accompanying document to the Green Paper towards adequate, sustainable and safe European pension systems {COM(2010) 365 final}
Date: 2010-07-07
Institutions: European Commission
Subjects: EU statistics, economic recession, free movement of capital, free movement of workers, pension scheme, population ageing, supplementary pension

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EUROPEAN COMMISSION 

Brussels, 7.7.2010 
SEC(2010) 830 final 

COMMISSION STAFF WORKING DOCUMENT 

EU LEGISLATION, COVERAGE AND RELATED INITIATIVES 

Accompanying document to the 

GREEN PAPER 

towards adequate, sustainable and safe European pension systems 

{COM(2010) 365 final} 

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TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

Description of EU legislation covering the pension pillars ......................................... 3 

Social Security Regulation........................................................................................... 3 

The IORP Directive...................................................................................................... 4 

The Insolvency Directive ............................................................................................. 4 

The existing Directive on safeguarding supplementary pension rights of a person 
moving within the EU and the draft proposal on portability of supplementary pension 
rights............................................................................................................................. 4 

1.5. 

The Life Assurance Directive ...................................................................................... 5 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

2.7. 

2.8. 

2.9. 

Related EU legislation and initiatives .......................................................................... 5 

UCITS IV Directive ..................................................................................................... 5 

Pre-contractual information disclosure ........................................................................ 6 

Financial education ...................................................................................................... 6 

Corporate Governance and remuneration policies....................................................... 7 

Non-life Insurance Directive (health) .......................................................................... 7 

Health policy ................................................................................................................ 7 

The Gender Equality Directives................................................................................... 8 

Taxation........................................................................................................................ 8 

Statistics ....................................................................................................................... 9 

2.10. 

EU-wide reviews.......................................................................................................... 9 

3. 

3.1. 

3.2. 

3.3. 

CEIOPS mapping of EU prudential regulation.......................................................... 10 

Statutory funded pension schemes/institutions .......................................................... 11 

Occupational pension schemes/institutions................................................................ 11 

Individual pension schemes/institutions .................................................................... 12 

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This  document  describes  EU  legislation  covering  the  pension  pillars  (section  1)  and  related 
EU  legislation  and  initiatives  (section  2).  A  mapping  of  the  EU  legislation  applicable  to 
pension schemes/institutions in the different EU Member States is provided in section 3. This 
mapping focuses in particular on prudential regulation and was carried out by the Committee 
of European Insurance and Occupational Pensions Supervisors (CEIOPS). 

1. 

DESCRIPTION OF EU LEGISLATION COVERING THE PENSION PILLARS 

1.1. 

Social Security Regulation 

EU law in the field of social security provides for the co-ordination but not the harmonisation 
of social security schemes. This means that each Member State is free to determine the details 
of its own social security system, including which benefits are to be provided, the conditions 
of eligibility, how these benefits are calculated and what level of contributions should be paid. 
EU  law  provisions,  in  particular  Regulations  No  883/20041  and  No  987/20092  (replacing 
Regulations  No  1408/713  and  No  574/724  since  1  May  2010),  establish  common  rules  and 
principles  which  must  be  observed  by  all  national  authorities  when  applying  national  law. 
These rules ensure that the application of the different national legislations respects the basic 
principles of equality of treatment and non-discrimination and persons exercising their right to 
free  movement  within  the  EU  are  not  adversely  affected  by  the  application  of  different 
national legislations. 

With regard to pensions, the EU Coordination Regulations cover old-age pensions, survivors' 
pensions and invalidity pensions. In general, only statutory schemes are coordinated. The EU 
Coordination rules lay down for the following principles: 

–  Aggregation: periods of insurance or residence completed under the legislation of another 

Member State are taken into account if necessary for entitlement to a benefit; 

–  Waiving of residence clauses: entitlement to a pension does not depend on residence in the 

Member State granting the pension; 

–  Each Member State where a person was insured for at least one year pays a pension; there 

is no 'transfer' of pension rights to the pension system of another Member State.  

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4 

Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the 
coordination  of  social  security  systems  (Text  with  relevance  for  the  EEA  and  for  Switzerland),  OJ  L 
166, 30.4.2004, p. 1–123  
Regulation  (EC)  No  987/2009  of  the  European  Parliament  and  of  the  Council  of  16  September  2009 
laying  down  the  procedure  for  implementing  Regulation  (EC)  No  883/2004  on  the  coordination  of 
social security systems. 
Regulation  (EEC)  No  1408/71  of  the  Council  of  14  June  1971  on  the  application  of  social  security 
schemes to employed persons and their families moving within the Community 
Council  Regulation  (EEC)  No  574/72  of  21  March  1972  fixing  the  procedure  for  implementing 
Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and 
their families moving within the Community 

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1.2. 

The IORP Directive 

A  major  milestone  was reached in  2003  with  the  adoption  of  Directive  2003/41/EC5  on  the 
activities  and  supervision  of  institutions  for  occupational  retirement  provision  (IORP 
Directive).  It  enables  pension  funds  to  benefit  from  the  Internal  Market  principles  of  free 
movement of capital and freedom to provide services. The Directive allows pension funds to 
manage occupational pension schemes for companies that are established in another Member 
State and allows European-wide companies to have only one pension fund for all subsidiaries 
in  Europe.  The  Directive  establishes  prudential  standards  to  ensure  that  members  and 
beneficiaries  are  properly  protected,  as  well  as  requirements  concerning  the  disclosure  of 
information.  The  Directive  is,  however,  based  on  minimum  harmonisation  and  mutual 
recognition and it does not cover all forms of occupational pension provision. 

1.3. 

The Insolvency Directive 

Directive  2008/94/EC6  provides  for  the  protection  of  employees’  rights  in  the  event  of  the 
insolvency of their employer, in particular in order to guarantee payment of their outstanding 
claims.  As  far  as  supplementary  occupational  pensions  are  concerned,  Article  8  requires 
Member  States  to  adopt  the  necessary  measures  to  protect  these  pensions.  The  European 
Court  of  Justice  has  ruled7  that  the  Directive  places  no  obligation  on  the  Member  States 
themselves to fund the rights to old-age benefits. Furthermore the Court took the view that the 
Directive cannot be interpreted as demanding a full guarantee of the rights in question. The 
Directive does no more than call, in general terms, for adoption of the measures necessary to 
“protect  the  interests”  of  the  persons  concerned,  while  leaving  the  Member  States 
considerable  latitude  as  regards  the  level  of  protection  and  ruling  out  any  obligation  to 
provide a full guarantee. At the same time, the Court considered that a system which may, in 
certain  cases,  lead  to  a  guarantee  of  benefits  of  less  than  half  of  that  entitlement,  cannot  be 
deemed to fall within the definition of “protect” as applied in the Directive. 

1.4. 

The  existing  Directive  on  safeguarding  supplementary  pension  rights  of  a 
person  moving  within  the  EU  and  the  draft  proposal  on  portability  of 
supplementary pension rights 

Unlike with social security pensions which are aggregated under EU rules, people who have 
supplementary  pension  rights  may  lose  out  when  they  change  jobs  within  or  between 
countries. A first step to tackle this issue was Council Directive 98/49/EC8, which effectively 
ensured that people moving across borders were treated no worse than those moving within a 
Member State. The Directive does not cover, however, what is often called the "portability" of 
supplementary pensions even though this may have a serious effect on worker mobility. 

The Commission has recognised that insufficient portability of supplementary pension rights 
can  create  important  obstacles  to  workers'  mobility,  and  therefore  to  the  free  movement  of 

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Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities 
and supervision of institutions for occupational retirement provision, OJ L 235 , 23/09/2003 P. 0010 – 
0021. 
Directive  2008/94/EC  of  the  European  Parliament  and  of  the  Council  of  22  October  2008  on  the 
protection of employees in the event of the insolvency of their employer OJ L 283, 28.10.2008, p. 36 
Judgment of the Court of 25 January 2007 (Carol Marilyn Robins and others v Secretary of State for 
Work and Pensions). C-278/05. ECR 2007 Page I-01053 
Council  Directive  98/49/EC  of  29  June  1998  on  safeguarding  the  supplementary  pension  rights  of 
employed and self-employed persons moving within the Community, OJ L 209, 25.7.1998, p. 46–49. 

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workers which is one of the basic rights enshrined in the Treaty. The Commission proposed a 
new Directive in October 2005 to set minimum standards for the acquisition, preservation and 
transferability  of  supplementary  pension  rights.  These  standards  would  apply  to  people 
moving both within and between EU countries. Internal mobility was included because it was 
impractical to separate internal and external mobility. In addition, labour mobility was key to 
promoting  economic  dynamism  and  labour  market  adjustment,  as  set  out  in  the  Lisbon 
Strategy. 

The  proposal  was  revised  by  the  Commission  in  2007  to  omit  the  transferability  element 
which had been opposed by some as technically difficult and potentially burdensome or open 
to  abuse.  As  a  result,  the  emphasis  was  laid  on  the  timely  acquisition  of  pension  rights  and 
their subsequent preservation (indexation). However, it has still not been possible to reach the 
unanimous agreement needed in Council. The proposal remains 'live'. 

1.5. 

The Life Assurance Directive 

The internal market in the field of life assurance, allowing insurance undertakings to operate 
throughout the EU and to establish and provide services freely, was initiated in 1979 with the 
adoption  of  the  First  Life  Directive.9  The  subsequent  improvements  to  the  legal  framework 
were  recast  in  2002  into  a  single  text  (Directive  2002/83/EC10).  The  prudential  rules 
applicable  to  life  assurance  undertakings  were  substantially  overhauled  in  2009  with  the 
adoption  of  the  Solvency  II  Directive  (Directive  2009/138/EC11).  The  harmonisation  of 
insurance regulation will give a new impetus to the internal market for life assurance products 
through  greater  economic  efficiency  and  stronger  protection  of  policy  holders.  It  was, 
however,  not  the  objective  of  the  Solvency  II  Directive  to  modernise  the  policyholder 
information requirements, which continue to differ significantly across Member States. 

2. 

RELATED EU LEGISLATION AND INITIATIVES 

2.1. 

UCITS IV Directive 

The  UCITS  Directive12  contains  the  regulatory  framework  for  retail  funds  at  the  European 
level and lays the basis for a single market in these funds. UCITS IV changes were adopted in 
2009  to  address  a  number  of  efficiency  concerns,  investor  protection  issues,  and  practical 
problems  that  have  been  identified  in  relation  to  the  UCITS  industry,  the  combination  of 
which was considered to be limiting the development of the UCITS market. 

More  specifically,  changes  were  made,  for  example,  in  the  areas  of  governance  and  risk 
management. The UCITS IV Directive contains changes that enhance the effectiveness of the 
management  company  passport,  in  particular  by  providing  for  safeguards  that  foster 

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First  Council  Directive  79/267/EEC  of  5  March  1979  on  the  coordination  of  laws,  regulations  and 
administrative provisions relating to the taking up and pursuit of the business of direct life assurance, 
OJ L 63, 13.3.1979, p. 1–18. 
Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning 
life assurance, OJ L 345, 19.12.2002, p. 1–51. 
Directive  2009/138/EC  of  the  European  Parliament  and  of  the  Council  of  25  November  2009  on  the 
taking-up  and  pursuit  of  the  business  of  Insurance  and  Reinsurance  (Solvency  II)  (Text  with  EEA 
relevance), OJ L 335, 17.12.2009, p. 1–155. 
Directive  2009/65/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  on  the  coordination  of  laws, 
regulations  and  administrative  provisions  relating  to  undertakings  for  collective  investment  in  transferable  securities 
(UCITS), OJ L 302, 17.11.2009, p. 32–96. 

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supervisory cooperation and mutual confidence. To ensure this confidence, the Commission is 
due  to  adopt  Level  2  implementing  measures  by  the  end  of  June  2010  that  will  harmonise 
certain  attributes  of  management  companies  business  (in  particular  organisational 
arrangements  including  rules  of  conduct,  conflicts  of  interest  but  also  risk  management  and 
measurement). As a result, once the management company is approved in one Member State 
it will be subject to a harmonised set of standards across the EU. 

2.2. 

Pre-contractual information disclosure 

There  are  several  examples  of  testing  of  pre-contractual  information  for  financial  services, 
both  at  EU  and  national  level.  At  the  EU  level,  the  Commission  asked  OPTEM  and  its 
partners  in  the  27  Member  States  to  carry  out  a  qualitative  study  among  consumers  on  the 
subject  of  pre-contractual  information  for  diverse  types  of  financial  products,  including 
consumer  credit,  mortgage  loans  and  investment  services.  A  summary  report  was  made 
available in January 2008.13 

The UCITS IV Directive requires UCITS to provide a Key Investor Information (KII) sheet in 
a harmonised and standardised form to the investor. On the basis of a consumer testing that 
fed  into  advice  from  the  Committee  of  European  Securities  Regulators  (CESR),  the 
Commission will adopt Level 2 implementing measures by the end of June 2010. The results 
of the  testing underlined  the  difficulty faced by retail investors in effectively engaging  with 
and  using  information  about  investment  products.  It  showed  that  key  information  on  risks, 
costs  and  performance  was  calculated  and  presented  inconsistently  or  in  such  a  way  that  it 
was difficult to use, and detailed content or presentation of information was not standardised. 
The Level 2 implementing measures are to ensure that the communication and presentation of 
Key Investor Information to individuals is visual, simple, and facilitates comparisons across 
funds. 

The  Commission  announced  in  its  Communication  of  30  April  2009  on  Packaged  Retail 
Investment Products (PRIPs)14 its commitment to introduce a new horizontal approach to the 
regulation of sales and pre-contractual disclosures for these products, so as to ensure a level 
playing field between different types of investment products offered in the retail market. The 
aim is to ensure that consumer protection measures are effective and appropriate. Following 
the Communication, the Commission will focus on developing specific legislative proposals 
for  this  new  horizontal  approach,  possibly  in  Spring  2011.  The  PRIPs  proposals  will  be 
subject to their own impact assessment, which will consider their incremental impact for all 
stakeholders. 

2.3. 

Financial education 

The  best  way  to  increase  the  financial  capability  of  consumers  in  the  Internal  Market  is  by 
developing coordinated strategies in individual Member States. The role of the Commission is 
to  encourage  the  Member  States  to  tackle  financial  education  issues  and  to  facilitate  an 
exchange of best practices. The Commission has taken initiatives to organise expert meetings, 
maintain a European database, develop on-line tools for teachers and support events through 
patronage. 

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information 

Pre-contractual 
http://ec.europa.eu/consumers/rights/docs/PCI_final_report_22Feb2008_en.pdf 
Communication  from 
COM(2009) 204 final 

financial 

services, 

January 

for 

the  Commission  on  Packaged  Retail  Investment  Products,  30.4.2009, 

2008, 

available 

at 

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2.4. 

Corporate Governance and remuneration policies 

Following  an  announcement  in  the  Commission  Communication  "Driving  European 
Recovery" of March 2009, the Commission adopted a Green Paper on 2 June 201015 in order 
to launch a consultation process on possible (legislative and non-legislative) EU measures in 
the area of Corporate Governance in financial institutions. The Green Paper addresses, among 
others,  the  role  of  boards,  shareholders,  supervisors  and  external  auditors  in  ensuring  good 
corporate governance, governance of the risk management process and remuneration policies. 

The Green Paper states that corporate governance should take account of the interests of other 
stakeholders (depositors, savers, life insurance policy holders, etc), as well as the stability of 
the  financial  system,  due  to  the  systemic  nature  of  many  players.  A  fortiori,  these 
considerations  are  relevant  for  pension  funds,  considering  their  economic  importance  and 
their growing role in the society. 

Furthermore, the Commission intends to consult, in a second stage, on possible measures in 
Corporate Governance for all listed companies early in 2011. 

2.5. 

Non-life Insurance Directive (health) 

The  First  Non-life  Insurance  Directive  (Directive  73/239/EEC16)  specifies  that  health 
insurance constitutes insurance business. Accordingly, supplementary private health insurance 
(insurance  which  provides  for  health  cover  which  is  already  covered  by  the  statutory  social 
security  system),  complementary  private  health  insurance  (insurance  which  provides  for 
additional  health  cover  which  is  outside  the  scope  of  the  statutory  social  security)  and 
substitutive health insurance (insurance serving as a partial or total alternative to health cover 
provided  by  the  statutory  social  security  system)  are  subject  to  the  Non-life  Insurance 
Directives. The first Non-life Insurance Directive excludes from the scope of the application 
of  the  non-life  insurance  directives  "insurance  forming  part  of  a  statutory  system  of  social 
security." The same applies to long-term care insurance. 

2.6. 

Health policy 

The state of people's health makes a significant difference between being able to work or not 
and  therefore  impacts  on  retirement  age  and  expenditure  on  pensions.  National  healthcare 
reforms  aimed  at  helping  citizens  to  age  in  good  health  as  well  as  EU  action  to  promote 
healthy ageing (as foreseen in the EU Health Strategy White Paper) can therefore contribute 
to achieving the Europe 2020 objectives of retaining citizens longer on the labour market. 

A  population  ageing  in  bad  health  means  a  smaller  workforce  with  many  people  unable  to 
work  because  of  health  problems,  lower  retirement  age  and  therefore  greater  spending  on 
pensions.  A  population  ageing  in  good  health  can  continue  working  as  it  grows  older  thus 

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Green Paper on Corporate governance in financial institutions and remuneration policies, COM(2010) 
284, available at: 
http://ec.europa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_e
n.htm  
First  Council  Directive  73/239/EEC  of  24  July  1973  on  the  coordination  of  laws,  regulations  and 
administrative provisions relating to the taking-up and pursuit of the business of direct insurance other 
than life assurance, OJ L 228 , 16/08/1973 P. 0003 – 0019. 

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contributing  to  rising  retirement  age  and  lowering  spending  on  pensions.  Citizens  in  good 
health retire about two years later than workers in poor health.17 

2.7. 

The Gender Equality Directives  

Three Gender Equality Directives have an impact on pension schemes.  

Directive 79/7/EEC18 implements the principle of equal treatment between men and women in 
matters of social security and notably covers statutory pensions. It however contains a number 
of exceptions to the principle of equal treatment. Member States are, for example, allowed to 
maintain different retirement ages for men and women. At the same time, even if there is no 
obligation  flowing  from  EU  gender  equality  law  to  equalise  pensionable  ages  for  men  and 
women in the field of social security, gender equalisation is often a first step in reforms aimed 
at  increasing  the  retirement  age  in  general  to  preserve  the  adequacy  and  sustainability  of 
pensions. 

Directive 2006/54/EC19 on employment and occupation covers occupational pension schemes. 
In accordance with the case law of the European Court of Justice, this framework also applies 
to pension schemes for a particular category of worker such as that of public servants if the 
benefits are paid by reason of the employment relationship with the public employer. In this 
case, these benefits are considered as pay.  

Finally,  Directive  2004/113/EC20  prohibits  discrimination  between  women  and  men  in  the 
access  to  and  supply  of  goods  and  services  and  therefore  covers  private/individual  pension 
products. It contains an exception enabling Member States to permit proportionate differences 
in  individuals'  premiums  and  benefits  where  the  use  of  sex  is  a  determining  factor  in  the 
assessment of risk based on relevant and accurate actuarial and statistical data (Article 5 (2)). 

2.8. 

Taxation  

In  parallel  to  its  proposal  of  the  IORP  Directive,  the  Commission  presented  a  Pension 
Taxation Communication21 in April 2001. At the time, many Member States did not grant tax 
relief for the payment of pension contributions to foreign pension funds, whereas they did so 
for  payments  to  domestic  funds.  This  would  hinder  the  functioning  of  the  proposed  IORP 
Directive.  The  Pension  Taxation  Communication  concluded  that  the  Member  States  cannot 
discriminate  against  pension  contributions  paid  to  foreign  IORPs.  After  attempts  to  find 
common solutions with the Member States in Council discussions, the Commission launched 
infringement  procedures  where  necessary.  Most  Member  States  adapted  their  legislation.  In 
two cases the Court of Justice of the EU ruled that if domestic pension contributions were tax 

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20  

21  

Survey of Health, Ageing and Retirement in Europe, Mannheim Research Institute for the Economics 
of Aging (MEA), 2008 
Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle 
of equal treatment for men and women in matters of social security (OJ L 6, 10.01.1979). 
Directive  2006/54/EC  of  the  European  Parliament  and  of  the  Council  of  5  July  2006  on  the 
implementation  of  the  principle  of  equal  opportunities  and  equal  treatment  of  men  and  women  in 
matters of employment and occupation (recast - OJ L 204 of 26.07.2006). It notably repeals Directive 
86/378/EC  (amended  by  Directive  96/97/EC)  on  occupational  social  security  schemes  (OJ  L  225, 
12.08.1986). 
Council  Directive  2004/113/EC  of  13  December  2004  implementing  the  principle  of  equal  treatment 
between men and women in the access to and supply of goods and services (OJ L 373 of 21.12.2004). 
The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001) 
214 final. 

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deductible, contributions paid to IORPs elsewhere in the EEA should also be tax deductible22. 
Concrete result of the Commission's work in the area is that mobile workers can now remain 
in  their  home  country  pension  scheme  if  they  take  up  a  job  in  another  Member  State  and 
contributions to IORPs in other Member States can now be paid without tax discrimination.  

The Pension Taxation Communication also concluded that discriminatory tax rules can be an 
obstacle to the mobility of pensions. In Commission vs. Belgium23, the Court of Justice of the 
EU  ruled  that  it  is  contrary  to  EU  law  to  tax  transfers  of  pension  capital  from  domestic 
pension  funds  to  funds  established  elsewhere  in  the  EEA  if  transfers  of  pension  capital 
between  domestic  pension  funds  are  tax  free.  The  Commission  intends  to  examine  whether 
there are any other Member States with similar rules. 

In April 2003 the Commission published a Dividend Taxation Communication24. On the basis 
of  the  case  law  of  the  Court  of  Justice  of  the  EU  this  Communication  concluded  that 
dividends  which  leave  a  Member  State  (outbound  dividends)  cannot  be  taxed  higher  than 
dividends which stay in the country (domestic dividends). Further to the Communication the 
Commission opened a large number of infringement cases against those Member States that 
discriminated  against  foreign  IORPs.  Some  Member  States  have  already  changed  their  law 
and eliminated the discriminations; a few others have been referred to the Court of Justice of 
the EU.  

2.9. 

Statistics 

Several  EU  bodies  are  involved  in  the  statistical  work  for  pensions.  The  purpose  of  the 
Indicator  Sub-Group  (ISG)  of  the  Social  Protection  Committee  (SPC)  is  to  collect  data  on 
coverage  and  contribution  rates.  Eurostat  collects  data  on  social  protection  benefits 
(ESSPROS),  disposable  income  (EU-SILC)  and  pension  funds  (Structural  Business 
Statistics). The European Central Bank (ECB) collects statistics on the volumes (stocks and 
flows)  of  the  assets  and  liabilities  of  pension  funds  and  insurance  corporations.  The  future 
European Systemic Risk Board (ESRB) is likely to step up its data requirements for financial 
stability purposes. The European Commission also participates in international work and has 
engaged in a joint project with the OECD to collect statistics on the adequacy of benefits from 
private pension provision. 

In the future, retired people will receive their pensions from at least two, if not more, sources 
(and pillars). Thus, the current statistical frameworks - even if improved - will not be able to 
provide  comprehensive  and  reliable  information  on  regular  pension-type  revenues.  It  is 
essential, therefore, to define precisely what sorts of regular receipts can be considered as a 
pension,  how  different  revenue  streams  may  be  added,  and  how  risks  related  to  some 
resources are to be measured. 

2.10.  EU-wide reviews 

A study carried out for the European Commission in 200725 provided an insight into the range 
of products in which retail clients invest when they save for the long term: namely term bank 

22  
23  
24  
25 

Commission vs. Belgium, Case C-522/04, Commission vs. Denmark, Case C-150/04. 
Case C-522/04. 
Dividend taxation of individuals in the Internal Market, COM(2003) 810 final. 
"The EU Market for Consumer Long-Term Retail Savings Vehicles" (BME Consulting, 15 November 
2007); available at http://ec.europa.eu/internal_market/finances/docs/cross-sector/study_en.pdf 

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deposits, securities, investment funds, life assurance contracts and funded pension schemes. It 
illustrated  the  degree  of  integration  in  this  market  in  the  EU.  The  study  also  provided  a 
snapshot of the drivers of consumer behaviour, in terms of both reasons for saving and choice 
of vehicle. 

A  more  recent  study  carried  out  for  European  Commission  in  200926  indicated  that  13 
Member  States  have  some  form  of  Equity  Release  Scheme  (Austria,  Bulgaria,  Finland, 
France, Germany,  Hungary, Ireland,  Italy, Netherlands,  Romania, Spain, Sweden, UK). The 
most significant markets are the UK, Ireland and Spain. ERS account for less than 0.1% of the 
EU mortgage market. The market for Loan model schemes is larger than that for Sale model 
schemes: the estimated volume of Loan model schemes is EUR 3.3 billion (50 000 contracts), 
whereas that for Sale model schemes is EUR 1.4 billion (with just under 20 000 contracts). 

3. 

CEIOPS MAPPING OF EU PRUDENTIAL REGULATION 

The  statutory  pay-as-you-go  (PAYG)  pension,  an  unfunded  defined-benefit  scheme,  is  the 
basis for the overall pension income for most EU citizens. A number of Member States have 
supplemented  the  statutory  pension  scheme  with  a  funded  tier  in  the  form  of  a  defined-
contribution  scheme,  which  is  administered  in  many  cases  by  a  private  financial  institution. 
Other  Member  States  have,  instead  of  or  in  addition  to  these  schemes,  set  up  unallocated 
demographic reserve funds to support statutory PAYG pensions. 

In many Member States the statutory pension is supplemented by occupational pensions and 
individual pensions. In some instances occupational pensions are offered on a PAYG basis or 
through book reserves on the employer's balance sheet, although the bulk is provided through 
funded  schemes  operated  by  pension  funds  or  insurance  undertakings  (e.g.  group  insurance 
contracts).  Individual  pensions  are  arranged  by  contract  directly  with  a  product  provider  - 
generally  a  life  assurance  company  or  a  pension  fund.  An  individual’s  contributions  are 
accumulated  and  invested,  and  the  resulting  fund  is  subsequently  used  to  provide  pension 
benefits for the individual. 

Participation  in  occupational  and  individual  schemes  may  be  mandatory  or  voluntary, 
although  increasingly  Member  States  are  allowing  the  possibility  of  opting-out  from 
mandatory pension schemes. 

Mirroring the disparate developments in Member States, the distinction between the various 
pension  pillars  has  also  become  less  straight-forward  in  recent  years.  At  the  request  of  the 
Commission, CEIOPS has carried out a detailed mapping exercise in 2009 to clarify the EU 
prudential  regulation  that  applies  to  the  different  pension  schemes/institutions.  The  EU 
Directives  considered  were  Directives  2003/41/EC  (IORP),  2002/83/EC  (Life)  and 
85/611/EEC  (UCITS).  Some  Member  States  also  referred  to  Directives  2006/48/EC 
(Banking) and Directive 93/22/EEC (Investment Services), repealed by Directive 2004/39/EC 
(MiFID).  The  remainder  of  this  section  summarises  the  main  results  of  the  mapping.  The 
more detailed information is provided in Table 1. 

26 

"Study  on  Equity  Release  Schemes  in  the  EU"  (Institut  für  Finanzdienstleistungen,  January  2009); 
available at: 
http://ec.europa.eu/internal_market/finservices-retail/docs/credit/equity_release_part1_en.pdf  

EN 

10 

   EN 

                                                 
Moreover, on the basis of this mapping, the Commission, with the collaboration of CEIOPS, 
is  conducting  a  further  exercise  aiming  to  review  data  on  private  pension  products. 
Preliminary results of this exercise indicate that occupational products reach a total of roughly 
€3.6  trillion,  of  which  €2.6  tril
lion  in  IORPs,  €0.5  trillion  in   insurance  products  and  €0.5 
trillion  in  other  investment  vehicles.  Personal  pension  products  account  for  around  €1.7 
trillion, of which €0.7 trillion in insurance product s, € 0.9 trillion in other investment vehicles 
and a further €58 billion in IORPs. 

3.1. 

Statutory funded pension schemes/institutions 

Statutory funded pension schemes/institutions, whether mandatory or not, are covered by EU 
Regulations 883/2004 and 987/2009 (replacing Regulations 1408/71 and 574/72 since 1 May 
2010). According to the mapping, they exist predominantly in the Member States that joined 
the EU in the period 2004-2007. Employers can pay contributions into the schemes in the case 
of EE. 

There  are  no  EU  prudential  rules  for  the  pension  funds  that  are  part  of  statutory  funded 
pension  schemes/institutions.  Most  of  the  Member  States  concerned  therefore  do  not  apply 
EU  prudential  regulation.  Some  Member  States  have,  however,  applied  the  Life  or  UCITS 
Directive to these pension funds. The mapping has highlighted the following situation: 

–  IORP Directive: 

–  Life Directive: 

–  UCITS Directive:   

–  Banking Directive:  

n/a 

EE 

EE 

n/a 

–  Investment Services (MiFID): 

n/a 

–  No EU prudential rules: 

BG, LV, LT, HU, PL, RO, SK 

3.2. 

Occupational pension schemes/institutions 

The IORP Directive covers many occupational pension schemes/institutions, but not all. The 
Directive has been implemented by almost all the Member States, with only a few exceptions. 
Article 4 of the IORP Directive, allowing many of the rules in the IORP Directive to apply to 
the occupational retirement provision business of life assurance undertakings, is used in three 
Member  States.  The  IORP  Directive  explicitly  excludes  book  reserve  and  PAYG  schemes 
from its scope. In many Member States there are also occupational pension schemes that are 
subject to the Life or UCITS Directives. The mapping has highlighted the following situation: 

–  IORP Directive: 

- Implemented with a few exceptions. 

–  Life Directive: 

BE, DK, DE, EL, LU, NL, AT, PL, PT 

- Article 4: FR, LT, SE 

–  UCITS Directive:   

–  Banking Directive:  

PL 

n/a 

EN 

11 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
–  Investment Services (MiFID): 

n/a 

–  No EU prudential rules: 

- book reserves: BE, DE, IT, CY, LU, AT, PT, SE 

3.3. 

Individual pension schemes/institutions 

- PAYG: CY 

Individual  pension  schemes/institutions  are  covered  by  a  broad  range  of  directives:  Life, 
UCITS, banking and investment services (MiFID). The IORP Directive is also used by some 
Member States that have chosen to apply the IORP Directive to individual pension schemes in 
the national transposition (e.g. RO). 

There  are,  however,  also  a  number  of  individual  pension  schemes/institutions  that  are  not 
covered by any EU prudential regulation. These are voluntary supplementary pensions in the 
form of individual DC schemes in seven Member States (BG, CZ, ES, HU, MT, PT, SI). In 
some of these Member States, the employers can act as a third person to contribute to personal 
accounts (BG, CZ), while in another it is common practice for employers to pay contributions 
on behalf of the member (HU). By contrast, in some Member States (ES, MT), employers are 
not allowed to contribute to personal accounts. 

The mapping has produced the following situation: 

–  IORP Directive: 

IT, LV, RO 

–  Life Directive: 

BE, DK, DE, EE, IE, ES, FR, IT, CY, LT, LU, HU, NL 

AT, PL, PT, SE, UK 

–  UCITS Directive:   

BE, DE, EE, LT, LU, HU, PL, PT 

–  Banking Directive:  

DE, LU, HU, PL 

–  Investment Services (MiFID): 

PL 

–  No EU prudential rules: 

BG, CZ, ES, HU, MT, PT, SI 

EN 

12 

   EN 

 
 
 
 
 
 
 
 
Table 1 – EU regulation applicable to pension institutions/schemes 

Important note: This table was prepared by CEIOPS and the information reflects the situation 
prevailing in May 2010. It has however been the decision of each member of CEIOPS as to 
what kind of institution, scheme or product is included in the table. The national information 
is therefore not necessarily comprehensive. Important country-specific notes are contained at 
the end of this table. 

Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

DB, DC or 
mixed 

Voluntary 
(b) 

Occupational 
(c) 

IORP 

BE 

IRP 
(Institutions 
de Retraite 
Professionnell
e)/ 

until 
01/01/2012: 

ASBL/VZW 

non-profit 
organisation 

IBP (Instelling 
voor 
Bedrijfspensio
envoorziening
) 

or 

or  

AAM/OVV 

mutual 
insurance 
association 

As from 
01/01/2007: 

OFP 

Organisation 
for Financing 
Pensions 

entreprise 
d’assurance/ 
verzekeringso
nderneming 

société par 
actions/ 
vennootschap 
op aandelen  

limited 
partnership 
with a share 
capital 

or  

société 
coopérative/ 

cooperative 
partnership 

same as 
above 
through 
group 
insurance 

+ 
individual 
life 
insurance 

voluntary  Occupational 
or individual 

Life 

coöperatieve 
vennootschap 

or 

AAM 
(Association 
d’Assurances 
Mutuelles)/ 

OVV 
(Onderlinge 
Verenigingsve
reniging) 

OPCVM/ICBE: 
SICAV/BEVEK 

(d) 

fonds 
d'épargne-
pension / 
pensioenspaar
fonds 

mutual 
insurance 
association 

UCITS: 
open-end 
investment 
company 

individual 
pensions 
savings 

voluntary 

individual 

UCITS 

EN 

13 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Book reserves 

DB/DC 
(e) 

voluntary 

occupational  Excluded 

from IORP 
Directive 
based on 
Art. 2.2.(e) 

Акционерно 
дружество 

Joint Stock 
Company 

No  DC 

Voluntary 
(a) 

Occupational 
(b) 

IORP 

Акционерно 
дружество 

Joint Stock 
Company 

No  DC 

Voluntary 
(a) 

Individual (c)  No EU 

Акционерно 
дружество 

Joint Stock 
Company 

No  DC 

mandatory Statutory 

BG 

Пенсионно-
осигурително 
дружество 

Пенсионно-
осигурително 
дружество 

Пенсионно-
осигурително 
дружество 

CZ  penzijní fond 

akciová 
společnost 

joint-stock 
company 

No  DC 

voluntary 

prudential 
legislation 

Regulation 
1408/71 
and 574/72 

No EU 
prudential 
regulation. 

funded 
(individual) 
(d) 

Individual, 
although 
occupational 
elements 
possible (a) 

DK 

Firmapensions
kasse 

Pensionskasse  Company 

No  DC or DB  Mandatory occupational 

IORP 

Pension 
Fund 

Livsforsikrings
selskab 

Aktieselskab 

Life 
Insurance 
Company 

No  DC or 

unit-
linked 

Voluntary/
Mandatory 
(a) 

Occupational/
individual 

Life 

Tværgående 
pensionskasse 

Pensionskasse  General 
Pension 
Funds 

No  DC or 

Mandatory  

Life 

unit-
linked 

DE  Pensionskasse   Aktiengesellsc

haft 

Joint-stock 
company 

No 

Voluntary 
(a) 

occupational 

IORP 

Versicherungs
verein auf 
Gegenseitigkei
t 

Mutual 
insurance 
association 

Corporationu
nder public 
law 

Körperschaft 
des 
öffentlichen 
Rechts  

Anstalt des 
öffentlichen 
Rechts 

Institution 
under public 
law 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Pensionsfonds 
(b) 

Aktiengesellsc
haft 

Joint-stock 
company 

No 

Voluntary 
(a) 

Occupational 

IORP 

Pensionsfonds
verein auf 
Gegenseitigkei
t 

Mutual 
pension fund 
association 

Gesellschaft 
mit 
beschränkter 
Haftung 

Limited 
liability 
company 

Eingetragener 
Verein 

Stiftung 

Registered 
association 

Foundation 

No 

No 

Voluntary 
(c) 

Voluntary 
(c) 

Occupational  Excluded 

from IORP 
Directive 
based on 
Art.2.2(e) 

Occupational  Excluded 

from IORP 
Directive 
based on 
Recital 16 
and Art. 
2.2(d) 

Aktiengesellsc
haft  

Joint-stock 
company 

No 

Voluntary 
(a) 

Occupational  Life 

Versicherungs
verein 
auf 
Gegenseitigkei
t 

Mutual 
insurance 
association 

Corporation 
under  public 
law 

Körperschaft 
des 
Öffentlichen 
Rechts 

des 

Anstalt 
öffentlichen 
Rechts 

Institution 
under  public 
law 

Direktzusage 
(book-reserve 
schemes) (b) 

Unterstützung
skasse (b) 

Lebensversich
erungs-
unternehmen 
(Direktversich
erung  –  direct 
insurance) (d) 

Altersvorsorge
vertrag 
(contract) 

Basisrentenve
rtrag 
(contract) 

EE  Vabatahtlik 

pensionifond 

Lepinguline 
fond 

Contactual 
fund 

No  DC 

Voluntary 

Individual 

No 

No 

Personal 
pension 
schemes 

Personal 
pension 
schemes 

Voluntary 

Individual 

Voluntary 

Individual 

Life, 
Banking, 
UCITS 

Life, 
Banking, 
UCITS 

UCITS+extr
a 
requirement
s 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Kohustuslik 
pensionifond 

Lepinguline 
fond 

Contactual 
fund  

No  DC 

Mandatory Statutory 

funded 
(individual) 

UCITS+extr
a 
requirement
s 

Elukindlustuss
elts 

Aktsiaselts 

Joint Stock 
Company 

No  DB or DC 

Voluntary 

Individual 

Life 

(Unit-
linked) 

Elukindlustuss
elts 

Аktsiaselts 

Joint Stock 
Company 

No  DB 

Mandatory Statutory 

Life 

funded 
(individual) 

IE  Occupational 
Pension 
Scheme (a) 

Trust 

Trust 

No  DB/DC/H

Voluntary  Occupational 

IORP 

ybrid 
schemes 
and  Trust 
Retireme
nt 
Annuity 
Contracts 

Individual 
Retireme
nt 
Annuity 
Contracts
/Personal 
Pensions 

Individual 
retiremen
t  savings 
accounts 

Personal 
pension 

Contract 

Contract 

No 

Contract 

Contract 

No 

Personal 
Retirement 
Savings 
Accounts 

EL  ΤΑΜΕΙΑ 

ΕΠΑΓΓΕΛΜΑΤΙ
ΚΗΣ 
ΑΣΦΑΛΙΣΗΣ 
(Τ.Ε.Α.) 

Νοµικά 
πρόσωπα 
ιδιωτικού 
δικαίου 
(ν.π.ι.δ.) µη 
κερδοσκοπικο
ύ χαρακτήρα. 

Non-profit 
private 
entities with 
legal 
personality. 

No  Occupatio
nal 
Insurance 
Funds 
(DC) (a) 

Voluntary 

Individual 

Life 

Voluntary 

Individual 

Life 

Voluntary  Occupational 

IORP (b) 

ΑΣΦΑΛΙΣΤΙΚΕ
Σ 
ΕΠΙΧΕΙΡΗΣΕΙΣ  

Group 
Insurance 
Contracts 
(c) 

Life (d) 

ES  Fondo de 

Pensiones de 
empleo 

Fondo de 
Pensiones de 
empleo 

IORP 

No  DC, DB, 
or mixed 

Voluntary  occupational 

IORP 

Fondo de 
Pensiones 
personal 

Fondo de 
Pensiones 
personal 

Personal 
Pension 
Fund 

No 

Individual 
and 
associate
d  pension 
scheme 

16 

Voluntary 

Individual (a)  No  relevant 

prudential 
EU 
legislation 
applicable  
(b) 

   EN 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Seguros 
colectivos 

Collective Life 
Insurance  

Collective Life 
Insurance  

PPSE 
(Employer 
Social 
Prevision 
Plan) 

PPA (Prevision 
Plan Assured) 

Individual Life 
Insurance  

Collective 
Life 
Insurance 
Contract 

Collective 
Life 
Insurance 
Contract 

Individual 
Life 
Insurance 
Contract 

No  DB 

Voluntary  occupational 

No  DB 

Voluntary  occupational 

No  DB 

Voluntary 

Individual 

Life (in 
general) 

Life (in 
general) 

Life (in 
general) 

FR  assureur vie 

Société 
anonyme 

Stock 
company  

DC/DB  

Occupational 
or individual 
(a) 

IORP (Art. 
4) or Life 
(b) 

Or  

Or  

Société 
d’assurance 
mutuelle 

Mutual 
insurance 
company 

Institution de 
prévoyance 

Institution de 
prévoyance 

« mutuelle »  Mutuelle du 

code de la 
mutualité 

Paritarian 
institution 
ruled by the 
“social 
protection 
code” 

Mutual 
company 
ruled by a 
specific code 

DC/DB 

DC/DB 

IT  Fondi 

pensione 
negoziali (a) 

Associazione/f
ondazione 

Association/f
oundation 

No  DC 

Fondi 
pensione 
aperti (b) 

da 
società 
in 

Patrimonio  di 
destinazione 
autonomo 
istituito 
una 
finanziaria 
modo 
separato 
rispetto 
patrimonio 
della stessa  

al 

No  DC 

An 
autonomous 
pool 
of 
assets 
instituted  by 
a 
financial 
company 
separately 
from  its  own 
assets 

Occupational 
or individual 
(a) 

IORP (Art. 
4) or Life 
(b) 

Occupational 
or individual 
(a) 

IORP (Art. 
4) or Life 
(b) 

Occupational   IORP 

occupational/
Individual 

IORP 

Voluntary 
opting-
out 

Voluntary 
opting-
out/Volunt
ary 

EN 

17 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Fondi 
pensione 
preesistenti 
autonomi (c) 

Associazione/f
ondazione  

Association/f
oundation 

No  DC, DB 

closed to 
new 
members 

Voluntary 
opting-
out 

occupational 

IORP  

Fondi 
pensione 
preesistenti 
(non 
autonomi) (d) 

Fondi 
pensione 
interni ai 
bilanci delle 
società 
promotrici 

Book reserve 

No  DC, DB 

closed to 
new 
members 

Voluntary 
opting-out 

occupational 

Associazione/f
ondazione 

Association/
Foundation 

Yes  DB/DC 

Mandatory Statutory 

funded 

Excluded 
from IORP 
Directive 
based on 
Art. 2.2(e) 

(d) 

Regulation 
1408/71 

Enti privati di 
previdenza 
obbligatoria 
dei liberi 
professionisti 
(e) 

Piani 
pensionistici 
individuali 
(Pip) (f)  

CY  Ταµεία 

Προνοίας 

Patrimonio di 
destinazione 
autonomo 
istituito da 
una 
compagnia di 
assicurazione 
in modo 
separato 
rispetto al 
patrimonio 
della stessa  

Νοµικά 
Πρόσωπα 
Ιδιωτικού 
∆ικαίου 

No 

Voluntary 

Individual 

Life 

An 
autonomous 
pool of 
assets 
instituted by 
an insurance 
company 
separately 
from its own 
assets 

Occupational 
(a) 

IORP 

No 

Provident 
Funds - 
Private 
Entities with 
Legal 
Personality 

DC/DB 
set up via 
collective 
agreemen
ts 

Mandatory 
or 
Voluntary 
(determin
ed by the 
rules of 
each 
provident 
fund) 

Ταµεία 
Συντάξεως 

Νοµικά 
Πρόσωπα 
Ιδιωτικού 
∆ικαίου 

– 

Pension 
Funds 
Private 
Entities  with 
Legal 
Personality 

No  DB  set up 
via 
collective 
agreemen
ts 

Mandatory  Occupational 

IORP 

(b) 

Επενδυτικά 
Ατοµικά 
Σχέδια Ζωής 

Ασφαλιστικό 
Συµβόλαιο 

Insurance 
Contract 

No 

Voluntary 
Opt Out 

Individual  

Life 

Unit 
Linked 
Personal 
Life 
Contracts 

Σχέδια 
Συντάξεως (c) 

Pay as you 
go pension 
schemes 

No  DB 

Mandatory occupational  Excluded 
from the 
IORP 
Directive 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Σχέδιο 
Φιλοδωρήµατο
ς (d) 

Book reserve

No  DB 

Mandatory occupational  Excluded 
from the 
IORP 
Directive 

LV  Privātais 

pensiju fonds 

Akciju 
sabiedrība 

Stock 
company 

No  DC/DB 

voluntary  Occupational 

IORP (b) 

and 
individual (a) 

N/A 

State  funded 
pension 
scheme (c) 

LT 

Pensijų 
asociacija 

Asociacija 

Association 

Gyvybės 
draudimo 
įmonė, 
vykdanti 
profesinių 
pensijų 
kaupimo 
veiklą  

Akcinė 
bendrovė/ 
Uždaroji 
akcinė 
bendrovė/Eur
opos 
Bendrovė 

Valdymo 
įmonė 

Akcinė 
bendrovė/Užd
aroji 
bendrovė 

akcinė 

Gyvybės 
draudimo 
įmonė 

Akcinė 
bendrovė/ 
Uždaroji 
akcinė 
bendrovė/Eur
opos 
Bendrovė 

Valdymo 
įmonė 

Akcinė 
bendrovė/Užd
aroji 
bendrovė 

akcinė 

Public 
limited 
liability 
company/Pri
vate limited 
liability 
company/Eu
ropean 
company 
(Societas 
Europaea) 

Public 
limited 
liability 
company/Pri
vate  limited 
liability 
company/ 

Public 
limited 
liability 
company/Pri
vate  limited 
liability 
company/Eu
ropean 
company 
(Societas 
Europaea) 

Public 
limited 
liability 
company/Pri
vate  limited 
liability 
company/ 

DC 

Mandatory
, voluntary

Statutory 
funded 

Regulation 
1408/71 

Voluntary  Occupational 

IORP 

Voluntary  Occupational 

IORP (Art. 
4) 

DC, DB 
(a) 

Life 
assurance 
contract 
under 
which 
occupatio
nal 
pensions 
are 
accumula
ted  

No  DC 

Voluntary  Statutory 

funded 

No  DC 

Voluntary  Statutory 

funded 

Excluded 
from IORP 
Directive 
based on 
Art. 2.2(a) 

Excluded 
from IORP 
Directive 
based on 
Art. 2.2(a) 

DC 

Voluntary 

individual 

UCITS (b) 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Gyvybės 
draudimo 
įmonė 

Akcinė 
bendrovė/ 
Uždaroji 
akcinė 
bendrovė/Eur
opos 
Bendrovė 

LU  Fonds de 

pension 
(CSSF) (a) 

Sepcav and 
assep 

Fonds de 
pension (CAA) 
(b) 

Association 
d’assurances 
mutuelles, 
société 
coopérative, 
société 
coopérative 
organisée 
comme une 
société 
anonyme ou 
association 
sans but 
lucratif 

Public 
limited 
liability 
company/Pri
vate  limited 
liability 
company/Eu
ropean 
company 
(Societas 
Europaea) 

Pension 
savings 
companies 
with  variable 
capital  and 
pension 
savings 
associations 

Mutual 
insurance 
associations, 
co-operative 
companies, 
co-operative 
companies 
organized as 
a public 
limited 
company, 
charitable 
associations 

Assurances de 
groupe 

Enterprise 
d’assurances  / 
Contrats 
d’assurance 
groupe 

Insurance 
company/ 
Group 
insurance 
contracts 

Régime 
interne de 
pension 

NA 
Provisions  au 
bilan 

NA 
Book-
reserve 
schemes 

Voluntary 

individual 

Life 

Life 
assurance 
contract  

No 

voluntary  Occupational  IORP 

No 

voluntary  Occupational  IORP 

No 

voluntary  Occupational  Life 

No 

voluntary  Occupational  No  relevant 

prudential 
EU 
legislation 
applicable 

EN 

20 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

No 

voluntary 

Individual 

Life, 
Banking, 
UCITS (c)  

Contrat de 
prévoyance-
vieillesse  

Pension 
products 
represented 
by insurance 
products as 
well as by 
banking 
products 
invested in 
licensed 
units for 
collective 
investment 

Produits de 
prévoyance-
vieillesse 
représentés 
par des 
produits 
d’assurance 
ainsi que par 
des produits 
bancaires 
investis dans 
des 
organismes de 
placement 
collectif 
agréés 

HU  magánnyugdíj
pénztár 

magánnyugdíj
pénztár 

Association-
like 
legal form 

special 

No  DC (a) 

mandatory Statutory 

funded 
(individual)  

Regulation 
1408/71  

önkéntes 
nyugdíjpénztá
r  

önkéntes 
nyugdíjpénztá
r 

Association-
like 
legal form 

special 

No  DC 

voluntary 

Individual (b)  No  relevant 

prudential 
EU 
legislation 
applicable  

Nyugdíjbiztosí
tás (Life 
Insurance 
company) 

- életbiztosító 
rt. 

-  joint-stock 
company  

No 

Pension 
insurance 

voluntary 

Individual 

Life 

 - biztosító 
egyesület 

- association 

foglalkoztatói 
nyugdíjszolgál
tatás 

Foglalkoztatói 
nyugdíjszolgál
tató rt. 

Joint stock 
company 

nyugdíjelőtak
arékossági 
számla (c) 

pension 
saving 
account 

No  DB/DC 

voluntary  Occupational 

IORP 

No  DC 

voluntary 

Individual 

Banking, 
UCITS (c) 

MT  Occupational 

Trust  

Trust  

No 

Retirement 
Scheme 

Contractual 

Contractual 
(a) 

Trust 
Deed  

Voluntary 
(b) 

occupational 

IORP (c) 

Contract 
between 
the 
employer 
and 
the 
Retireme
nt 
Scheme 
Administr
ator 

EN 

21 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Personal 
Retirement 
Scheme 

Trust  

Trust  

No 

Contractual 

Contractual 
(a) 

NL  Pensioenfonds 
(´pension 
fund´) 

Stichting 

Foundation 
(a) 

No 

Individual (d)  No EU 

prudential 
legislation 

Trust 
Deed 

the 

Contract 
between 
member 
and 
Retireme
nt 
Scheme 
Administr
ator 

Occupational 
(b) 

IORP 

Mandatory 
for 
industry-
wide 
schemes 

Voluntary 
opt-out for 
company 
schemes 

Verzekeraar 
(´insurance 
company´ or 
´insurer´) 

Naamloze 
vennootschap 

Public 
limited 
company 

No 

Voluntary  Occupational 
(b)/individual 

Life 

AT  Pensionskasse  Aktiengesellsc

haften 

Joint-stock 
company 

No  DB and 
DC 

voluntary 

occupational 

IORP 

Aktiengesellsc
haften, 
Versicherungs
auf 
verein 
Gegenseitigkei
t and SE 

Joint-stock 
company, 
mutual 
insurance 
association 
and SE 

Aktiengesellsc
haften, 
Versicherungs
verein 
auf 
Gegenseitigkei
t and SE 

Joint-stock 
company, 
mutual 
insurance 
association 
and SE 

Betriebliche 
Kollektivversic
herung 

Lebensindivid
ual- und 
Gruppenrente
nersicherung 

Direkte 
Leistungszusa
gen (Book-
reserve 
schemes) 

No  DB and 
DC 

voluntary 

occupational 

Life 

No  DB and 
DC 

voluntary 

Individual 

Life 

No  DB/DC 

voluntary  Occupational  Excluded 

IORP 

from 
Directive 
based 
Art 2.2(e) 

on 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

PL  pracowniczy 
fundusz 
emerytalny 

fundusz 
emerytalny 
(osoba 
prawna) 

occupational 
pension fund 
(in Polish 
legal 
framework is 
registered as 
separate 
legal entity) 

No  DC 

voluntary  Occupational 

IORP (b) 

(a) 

zakład 
ubezpieczeń 
na życie 

spółka 
akcyjna  

joint-stock 
company  

No  DC 

voluntary  Occupational 

Life 

(a) 

fundusz 
inwestycyjny 
otwarty 

fundusz 
inwestycyjny 

investment 
fund (in 
Polish legal 
framework is 
registered as 
separate 
legal entity 

No  DC 

voluntary  Occupational 

UCITS 

(a) 

No  DC 

voluntary  Occupational 

IORP (c) 

(a) 

zarządzający 
zagraniczny 

(foreign 
manager) 

by 

Not  specified 
–  all  form  of 
IORPs 
notified 
relevant 
authorities 
from 
Member 
States 

other 

Otwarty 
fundusz 
emerytalny 

fundusz 
emerytalny 
(osoba 
prawna) 

Open 
pension  fund 
(in 
Polish 
legal 
framework is 
registered as 
separate 
legal entity) 

No  DC 

mandatory Statutory 

funded 

Regulation 
1408/71  

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

No  DC  

voluntary 

individual 

1) UCITS 

2) Life 

3) Banking 

4) ISD 

Indywidualne 
konta 
emerytalne 

1) Fundusz 
inwestycyjny, 

2) Zakład 
ubezpieczeń 
na życie, 

3) Bank, 

4) instytucja 
prowadząca 

działalność 
maklerską. 

1) 
Investment 
fund -in 
Polish legal 
framework is 
registered as 
separate 
legal entity, 

2) joint-
stock 
company, 

3) joint-
stock 
company, 

4) Limited 
company or 
joint-stock 
company 

PT  Fundos de 

pensões 
fechados 
(closed 
pension 
funds) 

Adesões 
colectivas a 
fundos de 
pensões 
abertos 
(collective 
membership 
of open 
pension 
funds) 

Contratos de 
seguro de 
grupo (group 
insurance 
policies) 

Planos de 
poupança-refo
rma 
(saving-retire
ment 
schemes) 

Fundos de 
pensões 

Pension 
funds 

No  DB / DC 

Voluntary  occupational 

IORP  

Fundos de 
pensões 

Pension 
funds 

No  DB / DC 

Voluntary  occupational 

IORP 

Contratos de 
seguro 

Insurance 
policies 

No  DB / DC 

Voluntary  occupational 

Life 

No  DC 

Voluntary 

individual 

1) Fundos  de 
pensões 

1) Pension 
funds 

2) Contratos 
de seguro 

2) Insurance 
policies 

3) Fundos  de 
investimento 

3) Investme
nt funds 

1) No 
relevant EU 
prudential 
regulation 
(a) 

2) Life 

3) UCITS 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Adesões 
individuais a 
fundos de 
pensões 
abertos 
(individual 
membership 
of open 
pension 
funds) 

Contratos de 
seguro 
individuais 
(individual 
insurance 
policies) 

Planos de 
pensões 
financiados no 
balanço da 
empresa 
(book-reserve 
schemes) 

Fundos 
pensões 

de 

Pension 
funds 

No  DC 

Voluntary 

individual 

No  relevant 
EU 
prudential 
regulation 
(b) 

Contratos  de 
seguro 

Insurance 
policies 

No  DC 

Voluntary 

individual 

Life  

No  DB/DC 

voluntary 

occupational  Excluded 

(c) 

IORP 

from 
Directive 
based 
Art. 2.2(e) 

on 

RO  Administrator 

al unui fond 
de pensii 
administrat 
privat 

Administrator 
de fonduri de 
pensii 
facultative 

Administrator
ul unui fond 
de pensii 
administrat 
privat - 
Societate pe 
actiuni  

Administrator
ul de fonduri 
de pensii 
facultative - 
Societate pe 
actiuni  

Administrato
r of a 
privately 
administrate
d pension 
fund- joint 
stock 
company 

Administrato
r of 
voluntary 
pension 
funds - joint 
stock 
company 

No 

hybrid DC 
(a) 

Mandatory Statutory 

funded 
(individual) 

Regulation 
1408/71 

Yes  DC (b) 

Voluntary 

individual 

IORP (c) 

SI  Pokojninska 
družba 

Delniška 
družba 

Joint-stock 
company 

No  DC 

Voluntary 
opt-out 

Occupational 
(a) 

IORP 

Zavarovalnica  Delniška 

družba 

Joint-stock 
company 

No  DC 

Voluntary 
opt-out 

Occupational 
(b) 

IORP 

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Vzajemni 
pokojninski 
sklad 

Sklad 
obrtnikov in 
podjetnikov 
(SOP) 

Vzajemni 
pokojninski 
sklad, 
upravjavci: 
banka, 
zavarovalnica, 
pokojninska 
družba 

Mutual 
pension 
fund, 
managed  by 
bank, 
insurance 
company, 
pension 
insurance 
company 

No  DC 

Occupational 
(c) 

IORP 

Voluntary 
opt-out, 
Mandatory 
for  certain 
occupation
s 

Sklad 

Found 

No  DC/DB 

Voluntary 

Individual 

No relevant 
prudential 
EU 
legislation 
applicable 
to the 
pension 
product 

SK  dôchodková 
správcovská 
spoločnosť 

akciová 
spoločnosť 

joint 
company 

stock 

doplnková 
dôchodková 
spoločnosť  

akciová 
spoločnosť. 

joint 
company 

stock 

FI  ETA-

eläkesäätiö 

lisäeläkesäätiö 

ETA-
lisäeläkekassa 

eläkekassa 

SE  Livförsäkrings

Aktiebolag 

bolag 

company 
pension fund 
(independen
t legal 
entity) 

industry-
wide pension 
fund 
(independen
t legal 
entity) 

Proprietary 
life 
insurance 
company 

No 

No 

DC 
(personal, 
protected
) 

DC 
(hybrid, 
unprotect
ed) 

Voluntary 

Statutory 
funded 
(individual) 

Regulation 
1408/71 
and 574/72 

Individual,  in 
general (b) 

IORP 

Voluntary, 
in general 
(a)  

No  DB 

voluntary 

occupational 

IORP 

No  DB 

voluntary 

occupational 

IORP 

No  DC/DB 

Voluntary 
(a) 

1) 
Occupational 

1) IORP 
(Art. 4) 

2) individual 
(b) 

2) Life 

Livförsäkrings
bolag 

Ömsesidigt 
bolag 

Mutual life 
insurance 
company 

No  DC/DB 

Voluntary 
(a) 

1) 
Occupational 

1) IORP 
(Art. 4) 

2) individual 
(b) 

2) Life 

Tjänstepensio
nskassa 

Understödsför
ening 

Occupational 
pension fund

No  DC/DB 

Voluntary 
(a) 

Occupational 
and 
individual 

IORP 

EN 

26 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Pensionsstiftel
se (c)  

Stiftelse 

Pension 
foundation 

Särskild 
redovisning av 
pensionsskuld 
(Book 
reserves) (d) 

No  None, 

investme
nts only 

Voluntary 
(a) 

No  DB 

Voluntary 
(a) 

Occupational 

IORP 

Occupational  Excluded 

from IORP 
Directive 
based on 
Art. 2.2(e) 

UK  Occupational 

Trust 

Trust (a) 

No  DB 

Voluntary  occupational 

IORP 

DB scheme 

Occupational 
DC scheme 

Occupational 
Hybrid 
scheme 

Personal 
pension 
scheme 

Trust 

Trust (a) 

No  DC 

Voluntary  occupational 

IORP 

Trust 

Trust (a) 

No  DB/DC 

Voluntary  occupational 

IORP 

(b) 

Contract 

Contract 

No  DC 

Voluntary 

individual 

Life 

IS  Lífeyrissjóður  Sjóður 

Fund 

No  DB/DC 

Mandatory 
and 
voluntary 

Occupational 
(a) and 
individual 

No EU 
prudential 
legislation 

LI  Pension  Funds 

Stiftung 

Foundation 

Yes  DB or DC

Mandatory Occupational 

Regulation 
1408/71 
and 574/72 

(a) 

collective 
foundatio
n 
or 
captive 
foundatio
n 

(Pensionskass
e) 

Pensions 
funds 
(Pensionsfond
s) 

Stiftung, 

Foundation, 

No 

DB or DC

Voluntary  Occupational 

IORP 

(b) 

biometric
risk 
or 
not 

call 
for 
additional 
cover  or 
not 

Aktiengesellsc
haft, 

Limited 
company, 

Europäische 
Aktiengesellsc
haft, 

Societas 
europa, 

Genosenschaf
t 

Europäische 
Genossenscha
ft 

Cooperative 
society 

Societas 
Cooperativa 
Europaea 

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Insurance 
company 
(Versicherung
sunternehmen
, direkte 
Lebensversich
erung) 

Aktiengesellsc
haft,  

Limited 
company,  

Genossenscha
ft 

Cooperative 
Society 

No  DC or DB  Voluntary  Occupational 

IORP 
(Art.4) 

NO  Foretakspensj
ons-ordninger 

No  DB  

1) 
Pensjonskasse
r 

2) 
Livsforsikrings
- selskaper 

1) Pension 
funds 

3) Life 
insurance 
companies 

Innskuddspen
sjons-
ordninger 

1) 
Pensjonskasse
r 

1)Pension 
fund, 

No  DC 

It is 
mandatory 
to have a 
DC or a 
DB 
scheme  

It is 
mandatory 
to have a 
DC or a 
DB 
scheme 

occupational  1) IORP 

2) Life 

Occupational  1) IORP 

2) IORP 

3) Life 

4) Banking  

5) UCITS 

2) 
Innskuddspen
sjons-foretak 

3) 
Livsforsikrings
-selskaper 

4) Banker 

5) 
Forvaltningsse
lskap for 
verdipapirfond 

2) Defined 
contribution 
pension 
undertakings
, 

3)Life 
insurance 
companies 

4)Banks 

5) 
Companies 
which 
manage 
securities 
funds 

Individual 
pension 
schemes 

1) 
Livsforsikrings
selskaper 

1) Life 
insurance 
companies 

2) Banker 

2)Banks 

3) 
Forvaltningsse
lskap for 
verdipapirfond 

4) 
Pensjonskasse
r 

3) 
Companies 
which 
manage 
securities 
funds 

4) Pension 
fund (e) 

No  DC 

Voluntary 

Individual 

1) Life 

2) Banking  

3) UCITS 

4) IORP 

EN 

28 

   EN 

 
 
 
 
 
 
 
 
Types of the private pension institutions 

Domestic 
name  

Legal form 
(domestic) 

Legal form 
(English) 

Art. 
3? 
Y/N 

Types of 
pension 
schemes

Mandator
y / 
voluntary 
/ 
voluntary 
opt-out 

Source 

•  Statutory 
funded 
•  occupational 
• 
individual 

EU 
regulation 

Statens 
Pensjonskasse 

Pension fund 

Book  reserves 
(a) 

Statens 
Pensjonskas
se is a 
pension fund 
administerin
g pension 
schemes for 
state 
employees 
and certain 
other groups 
of 
employees 

Pension 
schemes 
based on 
contract 
where the 
benefits are 
paid by the 
employer/un
dertaking  

DB 

Mandatory Occupational  Excluded 

from IORP 
directive 
based on 
Art. 2.2. (a) 
and/or (c) 

Usually 
DB (b) 

voluntary  Occupational  Excluded 

from IORP 
directive 
based on 
Art. 2.2. (e)

Pensjonsfond 
(c) 

pension fund 

DB 

Occupational  Excluded 

IORP 

from 
directive 
on 
based 
Art.  2.2  (c)
and/or (d) 

Mandatory 
if a 
pension 
fund as 
mentioned 
is 
establishe
d 

pension funds  pension 
schemes 
fixed by law 
for certain 
occupational 
groups (d) 

pension 
fund 
sponsored  by 
State 

Pension fund 
for medical 
parctitioners 

pension  funds 
sponsored 
partly  by  the 
State 

Pension 
funds 
administratin
g early 
retirement 
schemes 

DB 

Mandatory Occupational  Excluded 

from IORP 
directive 
based on 
Art. 2.2(c) 

DB 

Mandatory Occupational  Excluded 

IORP 

from 
directive 
based 
Art. 2.2(c) 

on 

DB 

Voluntary  Occupational  Excluded 

IORP 

from 
directive 
based 
Art. 2.2(c) 

on 

Note: The column "Art. 3? Y/N" indicates whether or not Article 3 of the IORP Directive applies. This article specifies that 
institutions for occupational retirement provision which also operate compulsory employment-related pension schemes which 
are  considered  to  be  social-security  schemes  covered  by  Regulations  (EEC)  No  1408/71  and  (EEC)  No  574/72  shall  be 
covered by the IORP Directive in respect of their non-compulsory occupational retirement provision business. 

Country-specific notes to the table: 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Belgium (BE) 

a)  The  legal  forms  possible  until  01/01/2012  are:  ASBL  (Association  Sans  But  Lucratif)/VZW  (Vereniging  Zonder 
Winstoogmerk),  or  AAM  (Association  d’Assurances  Mutuelles)/OVV  (Onderlinge  Verenigingsvereniging).  The  new  legal 
form  since  01/01/2007  is  the  OFP  (Organisme  de  Financement  de  Pensions/Organisme  voor  de  Financiering  van 
Pensioenen). 

b) Voluntary opt-out in some industry-wide schemes under certain conditions. 

c) Scope of schemes: employer, industry-sector or self-employed (some are organised by profession but not necessarily); an 
IORP may manage several types of schemes with different scopes. 

d)  Organisme  de  placement  collectif  en  valeurs  mobilières  (OPCVM)  /  instelling  voor  collectieve  belegging  (ICBE): 
organismes  de  placement  collectif  publics  à  nombre  variable  de  parts  (SICAV)  /  openbare  instellingen  voor  collectieve 
belegging met veranderlijk aantal rechten van deelneming (BEVEK). 

e) The scope is limited to providing pension benefits to company managers. 

Bulgaria (BG) 

(a)  Each  insured  person  in  a  voluntary  pension  fund  has  an  individual  account  in  which  his/her  personal  contributions  are 
accumulated. In the same personal account contributions can be made by employers or third persons with prior consent from 
the insured person. 

(b)  The  occupational  pension  schemes  are  managed  within  pension  funds  which  are  legal  persons.  The  pension  funds  are 
established  and  managed  by  pension  insurance  companies,  which  are  joint  stock  companies.  The  pension  insurance 
companies manage separate pension funds for voluntary occupational schemes. 

(c)  The  individual  pension  schemes  are  managed  within  pension  funds  which  are  legal  persons.  The  pension  funds  are 
established  and  managed  by  pension  insurance  companies,  which  are  joint  stock  companies.  The  pension  insurance 
companies manage separate pension funds for voluntary individual schemes. 

(d)  The  mandatory  pension  schemes  are  managed  within  pension  funds  which  are  legal  persons.  The  pension  funds  are 
established  and  managed  by  pension  insurance  companies,  which  are  joint  stock  companies.  The  pension  insurance 
companies manage separate pension funds for mandatory schemes (universal and professional pension funds). 

Czech Republic (CZ) 

a)  This  product  is  based  on  an  individual  contract  that  can  be  concluded  regardless  of  the  client’s  occupational  status. 
However, there can be some occupational element in the sense that an employer can act as a third person contributing to the 
client’s account. In 2008, this was the case for approximately 25% of clients. 

Denmark (DK) 

a)  For  life  insurance  companies  participation  is  mandatory  and  the  scheme  belongs  to  the  occupational  pillar  when  the 
scheme is part of a pension plan in a company. 

Germany (DE) 

a)  In  general  voluntary.  In  some  areas,  there  are  collective  agreements  providing  for  obligatory  occupational  retirement 
provisions or financial incentives for employees for deferred compensation.  

b) The insolvency coverage by the PSVaG (Pensions-Sicherungs-Verein Versicherungsverein auf Gegenseitigkeit) applies to 
this type of occupational retirement provisions (insolvency of the employer). 

c)  In  general  voluntary.  In  some  areas,  there  are  collective  agreements  providing  for  obligatory  occupational  retirement 
provisions. 

d)  Under  certain  circumstances,  the  insolvency  coverage  by  the  PSVaG  (Pensions-Sicherungs-Verein  Versicherungsverein 
auf Gegenseitigkeit) applies to this type of occupational retirement provisions (insolvency of the employer). 

Ireland (IE) 

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a) The pension scheme is the institution for occupational retirement provision. Legal separation of pension fund assets from 
all other assets is achieved via the trust mechanism under which all pension schemes are set up. 

Greece (EL) 

a) Occupational Insurance Funds are independent legal entities. They are established on a voluntary basis in each company or 
sector(s) of employment on the initiative either of employees or employers or through an agreement between employees and 
employers  as  well  as  on  the  initiative  of  self-employed  or  independent  professionals  or  farmers  or  their  associations. 
Depending on the type of arrangement, Occupational Insurance Funds can provide benefits in kind or in cash, in the form of 
annuity  or  as  a  lump  sum.  Occupational  Insurance  Funds  that  provide  retirement  benefits  operate  on  a  funded  basis  (DC 
pension schemes). 

b)  In  addition,  also  Directive  98/49/EC  (safeguarding  the  supplementary  pension  rights)  and  Directive  2006/54/EC  (equal 
opportunities) apply.  

c) Group Insurance Contracts concluded between the employer and the insurance company in the sectors VII "management 
of group pension funds" or IX "works similar to social security". 

d) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies. 

Spain (ES) 

a) Employers cannot pay contributions on behalf of members into this scheme.  

b) The national legislation applicable is the Pension Plan and Fund Act (Texto Refundido de la Ley 8/1987, de regulación de 
Planes y Fondos de Pensiones) of 29 November 2002. 

France (FR)  

a)  All  these  institutions  are  able  to  sell:  (i)  occupational  pension  schemes,  in  particular  “Article  83”  schemes  (defined-
contribution), “article 39” schemes (defined-benefit) or “contrats Madelin” schemes (defined-contribution); or (ii) individual 
life insurance (individual pension savings). 

b) For occupational retirement provision, the institution can decide about the regulatory framework: life directive or IORP 
directive,  with  application  of  its  article  4.  The  institution  has  to  ask  for  a  specific  agreement  if  it  wants  to  use  the  IORP 
directive. For individual retirement provision, the life directive applies. 

Italy (IT) 

a)  Independent  legal  entity  set  up  as  a  result  of  an  agreement  between  employers  and  trade  unions  at  industry  level  (also 
company, group, or regional funds are possible and have in fact been instituted). 

b) Pension funds instituted by financial intermediaries (banks, insurance companies, etc) as segregated assets. They can host 
both occupational and personal schemes. 

c) Pension funds instituted before 1993 as an independent legal entity. 

d) Non-autonomous pension funds instituted before 1993 as book reserves within the balance sheet of an employer. When the 
company that sets up the pension fund is a bank or an insurance, which is the typical case, the banking directive or insurance 
directive applies. 

e)  Independent  private  entities  operating  social  security  schemes  for  several  categories  of  self-employed,  professional 
workers (such as lawyer, etc.). 

f) Personal retirement plans based on individual life insurance companies. 

Cyprus (CY) 

a) There are company provident funds and industry-wide provident funds, which provide lump sum benefits. 

b)  There  are  employees´  pension  funds  (private  companies,  semi  public  organizations  and  local  authorities)  and  pension 
funds for self employed (advocates and doctors). 

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c) These schemes have no legal personality. They are pay as you go pension schemes that provide a lump sum benefit and a 
monthly benefit for life. 

d)  These  schemes  have  no  legal  personality.  They  are  book  reserve  retirement  bonus  schemes  that  provide  a  lump  sum 
benefit. 

Latvia (LV) 

a) There are closed pension funds which provide only occupational pensions and open pension funds which are allowed to 
operate both occupational and individual pensions. 

b) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.  

c)  This  scheme  is  part  of  the  state  pension  and  contributions  paid  to  the  scheme  are  part  of  the  social  tax.  The  scheme  is 
operated by the State social security agency. The assets of the scheme are managed by private asset managers (they are not 
IORPs). State funded pension scheme could be treated as part of the funded tier of statutory pensions. 

d) Voluntary for those socially insured persons who were at age between 30 and 45 at 01.07.2001. 

Lithuania (LT)  

a) DB schemes shall be implemented only for individuals who are not subject to the Lithuanian social security and labour 
legislation, i.e. in case of cross-border activities. 

b)  No  relevant  prudential  EU  legislation  applicable  to  the  pension  product.  However,  Directive  85/611/EEC  (UCITS)  is 
applied for the providers. 

Luxembourg (LU) 

a) Authorised and supervised by CSSF.  

b) Authorised and supervised by Commissariat aux Assurances. 

c)  No  relevant  prudential  EU  legislation  applicable  to  the  pension  product.  To  the  provider:  Directive  2002/83/EC  for 
underlying insurance contracts, Banking Directive 2006/48/EC and UCITS directive (2001/108/EC). 

Hungary (HU)  

a) Since 1.1.2010, there is a performance guarantee equal to inflation.  

b) Members are obliged to pay contribution. However the employer has the possibility to pay contribution on behalf of the 
member. 

c)  This  is  a  special  saving  account  with  tax  incentives.  There  is  no  relevant  prudential  EU  legislation  applicable  to  the 
pension product. To the provider: Banking Directive 2006/48/EC and UCITS directive (2001/108/EC). 

Malta (MT) 

a)  A  Retirement  Scheme  of  a  contractual  nature  consists  of  a  separate  pool  of  assets  with  no  legal  personality  with  the 
purpose of providing retirement benefits. 

b) Currently the pension system in Malta is still based on state pension provisioning.  

c) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.  

d) An employer cannot contribute to Personal Retirement Schemes that may be established in terms of the current legislation. 
These Personal Retirement Schemes would be funded solely by contributions from the individual. 

Netherlands (NL) 

a) Various legal forms are permitted, but pension funds almost exclusively prefer a Foundation. 

b) As for occupational pension schemes, the social and labour law and the information requirements are the same for insurers 
and pension funds. 

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Poland (PL) 

a) There are four legal forms of occupational pension plans in Poland which could be freely chosen by an employer as the 
plan sponsor. 

b) “Pracowniczy fundusz emerytalny” is a Polish financial institution (fund) which operates in Poland and under the Polish 
law and its only two tasks are to accumulate and to administer contributions (premiums) from sponsoring undertakings for 
occupational  pension  purposes.  This  institution fulfils  criteria  for  IORPs  under  Article  6a  of  the  IORP  Directive,  so  it can 
also operate cross-border in other Member States. 

c) “Zarzadzajacy zagraniczny” is a foreign IORP which operates cross-border in Poland, in the meaning of the Polish law. 

Portugal (PT) 

a)  These  institutions  are  out  of  the  scope  of  the  IORP  Directive  because  they  are  institutions  for  personal  retirement 
provision. They are covered either by the Life or UCITS Directive or by the national pension fund legislation. The national 
pension  fund  legislation  (one  single  Decree-Law),  which  always  covered  both  occupational  and  individual  schemes,  was 
updated to reflect the requirements of the IORP Directive. 

b)  These  institutions  are  out  of  the  scope  of  the  IORP  Directive  because  they  are  institutions  for  personal  retirement 
provision.  They  are  covered  by  national  pension  fund  legislation.  This  legislation  (one  single  Decree-Law),  which  always 
covered both occupational and individual schemes, was updated to reflect the requirements of the IORP Directive. 

c) Usually covers retirement benefits that are not tax qualified, e.g. early retirement programmes. 

Romania (RO) 

a) Personal, mandatory, minimum benefit established by Law, funded pension scheme with automatic enrolment.  

b) Voluntary, unprotected, funded pension scheme. 

c) In the national implementation. 

Slovenia (SI) 

a) May offer individual pension policies. 

b) May offer individual pension policies and life insurance.  

c) The mutual pension fund is not a legal entity. It may offer individual policies.  

Slovakia (SK) 

a) Mandatory for certain categories of employees (e.g. miners). 

b) Occupational for certain categories of employees (e.g. miners). 

Sweden (SE) 

a) Voluntary, though most occupational pension is mandatory through collective agreements. 

b) May offer life insurance (separate) as well.  

c) Linked to companies who have technical provisions as DB book reserves (outside of IORP directive scope) 

d) Companies recently try to set up book reserves even for DC schemes. The Swedish authorities have therefore initiated a 
discussion  with  the  companies  to  begin  in  the  near  future.  By  law  it  is  required  that  the  book  reserves  must  be  secured. 
Normally this is done through credit insurance. 

United Kingdom (UK) 

a) The pension scheme is classed as the institution. As such there is no legal separation. Legal separation of pension fund 
assets from all other assets is achieved via the trust mechanism under which all pension schemes are set up. 

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b) Legally classified in UK as DB but has some guarantees and some money purchase elements. 

Iceland (IS) 

a) Pensions fund are in many cases based on profession, but some professions can choose in which pension fund they pay. 

Liechtenstein (LI) 

a)  Beside  the  statutory  pillar  (old  age,  disability  and  survivors’  insurance;  AHV),  Liechtenstein  has  also  a  mandatory 
occupational  pillar  to  supplement  the  statutory  pillar.  For  each employee  for  whom  an  employer  has  the  obligation  to  pay 
contributions to the social insurance (statutory pillar), the employer has also the obligation to pay to an occupational DB or 
DC scheme (beside some exceptions; minimum contributions are stipulated by law). The relevant law is the “Gesetz vom 20. 
Oktober 1987 über die betriebliche Personalvorsorge” (BPVG). 

b)  For  an  employee  having  the  obligation  to  pay  contributions  to  the  social  insurance  (statutory  pillar),  only  voluntary 
contributions can be made into a pension plan according to the “Gesetz vom 24. November 2006 betreffend die Aufsicht über 
Einrichtungen  der  betrieblichen  Altersversorgung”  (Pensionsfondsgesetz;  PFG),  with  which  directive  2003/41/EC  was 
implemented. The mandatory part has to be paid into a pension plan according to the BPVG. 

c) Insurance company (Versicherungsunternehmen, direkte Lebensversicherung). 

Norway (NO) 

a) The use of this kind of schemes is unknown and probable very limited.  

b) Usually DB schemes based on contract and usually limited to providing pension benefits to company managers. 

c) All pensjonsfond are established according to tax regulation before 1968. Pensjonsfond are without guaranteed benefits. 
The benefits are derived according to certain rules laid down in tax law on the basis of the size of the fund. Benefits from 
these pension funds are paid primarily in order to compensate employers/pensioners born before 1917 for reduced benefits 
from State pension scheme. 

d) The pension schemes are fixed by legislation. 

e) It is legally possible for pension funds to offer individual pension schemes to members. 

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