Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directives (EU) 2016/2341 and 2016/97 as regards the strengthening of the framework for occupational retirement provision
Date: 2025-11-20
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU Member State, European Insurance and Occupational Pensions Authority, approximation of laws, consumer information, investment company, investment promotion, regulation of investments, savings, supplementary pension

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   EUROPEAN COMMISSION  Brussels, 20.11.2025  COM(2025) 842 final 2025/0362 (COD)  Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directives (EU) 2016/2341 and 2016/97 as regards the strengthening of the framework for occupational retirement provision (Text with EEA relevance)  
 
 
EXPLANATORY MEMORANDUM 

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CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Ensuring that people across the EU can retire with dignity, security and adequate income lies 
at the heart of the EU’s social and economic agenda. As EU citizens live longer, the challenge 
of  maintaining  decent  living  standards  in  retirement  has  become  more  pressing.  Citizens 
expect that after a lifetime of work, they will have access to a stable income that is sufficient 
to support a decent quality of life. Yet, the sustainability of pension systems and the adequacy 
of  retirement  income  across  the  EU  are  under  increasing  strain  as  a  result  of  demographic 
ageing and new forms of work. The EU’s population is living longer, while the working-age 
population  is  shrinking.  This  structural  shift  implies  that  fewer  workers  will  be  available  to 
finance the pensions of an increasing number of retirees, creating fiscal and social pressures 
that, if left unaddressed, could erode living standards and intergenerational fairness. 

The EU must therefore act to help citizens secure their retirement income and preserve their 
standard  of  living  in  the  face  of  unfavourable  demographic  developments,  subdued 
productivity  growth,  and  broader  transformative  challenges  linked  to  climate  change, 
digitalisation,  and  geopolitical  uncertainty.  The  capacity  to  address  the  pension  challenge 
effectively will shape the EU’s economic resilience and social cohesion in the decades ahead. 

The  pension  challenge  is  therefore  central  to  EU’s  economic  and  social  future.  It  concerns 
how  a  growing  share  of  the  population  can  maintain  an  adequate  standard  of  living  after 
retirement,  while  ensuring  that  the  burden  on  future  generations  remains  sustainable.  The 
European  Pillar  of  Social  Rights1,  particularly  Principle  15  on  “Old  age  income  and 
pensions”,  enshrines  the  right  of  workers  and  the  self-employed  to  a  pension  that  is 
commensurate  with  their  contributions  and  ensures  an  adequate  income,  with  equal 
opportunities for women and men to acquire pension rights. 

The  promise  of  an  adequate  and  sustainable  pension  remains  under  pressure,  despite 
numerous  reforms  at  national  level.  Many  Member  States  have  reduced  public  pension 
replacement  rates,  increased  the  statutory  pension  age,  or  shifted  from  defined  benefit  to 
defined contribution schemes. Individuals are therefore increasingly expected to complement 
statutory pensions with occupational  or personal savings. This  places a “double burden” for 
the  working-age  population,  who  must  finance  current  retirees,  while  also  saving  for  their 
own retirement income. 

People  need  to  be  able  to  access  safe,  efficient,  transparent  and  high-performing  pension 
products  in  order  to  build  up  sufficient  retirement  savings.  Reallocating  household  savings 
from  low-yielding  deposits  to  supplementary  pension  products  that  offer  long-term 
investment  opportunities  can  help  individuals  achieve  a  higher  and  more  stable  retirement 
income.  At  the  same  time,  these  savings,  when  channelled  through  well-governed  and 
efficiently  managed  pension  institutions,  represent  an  important  source  of  long-term  capital 
for  the  European  economy.  The  supplementary  pension  sector  plays  a  double  role: 
safeguarding individuals’ financial security in retirement and contributing to EU’s long-term 
economic sustainability. 

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The European Pillar of Social Rights  

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Recent  high-level  analyses  have  emphasised  the  importance  of  strengthening  this  channel 
between savings and investment. The reports by Mario Draghi2 and Enrico Letta3 highlighted 
that  maintaining  EU’s  living  standards  in  the  context  of  a  shrinking  workforce  will  require 
stronger productivity and increased investment. The Draghi report, in particular, called for a 
more efficient mobilisation of household savings through long-term saving products such as 
occupational pensions, pointing to successful national examples that could inspire a broader 
EU approach. 

There is a strong need to strengthen supplementary pensions as part of the EU’s broader social 
contract.  The European  Council’s Conclusions of 17-18 April 20244 called for further work 
on developing pensions and long-term savings products, recognising their contribution to the 
green  and  digital  transitions  and  to  the  growth  of  EU  businesses.  The  European  Council’s 
Conclusions  of  20  March  20255  reiterated  the  importance  of  increasing  private  capital 
participation  to  support  investment  and  competitiveness,  and  invited  the  Commission  to 
promote greater retail participation in capital markets, including through pension products. 

In 2019, a High-Level Group of Experts on Pensions6 that involved social partners provided 
strategic  advice  on  how  supplementary  pensions  can  contribute  to  the  adequacy  of  old-age 
income and to the development of the EU pension market. The European Court of Auditors 
concluded  in  a  2024  report7  that  EU  action  had  so  far  been  limited  in  its  effectiveness  and 
called for more effort to strengthen occupational pensions as a complement to public schemes.  

The design of pension systems remains under the competence of the Member States, but EU-
level  measures  can  support  and  complement  national  efforts  to  ensure  adequate  retirement 
income.  The  Institutions  for  Occupational  Retirement  Provision  (IORP)  framework  has 
provided  the  regulatory  foundation  for  occupational  pensions  in  the  EU,  establishing 
standards  for  prudential  supervision,  governance,  and  the  protection  of  members  and 
beneficiaries.  While  not  all  occupational  pension  vehicles  fall  under  the  IORP  II  Directive, 
members and beneficiaries in non-IORP schemes should be subject to sound governance and 
oversight and could benefit from being covered by the IORP II Directive.  

In the Political Guidelines 2024–20298, President von der Leyen announced the creation of a 
European  Savings  and  Investments  Union,  designed  to  make  EU  savings  work  more 
effectively for long-term growth and prosperity. In its Communication of 19 March 2025 on 
the  Savings  and  Investments  Union,  the  Commission  recognised  the  potential  of  the 
supplementary  pension  sector  to  contribute  to  this  goal  by  mobilising  private  savings  for 
productive investment and ensuring that the benefits of such investment are channelled back 
to citizens in the form of higher and reliable retirement incomes. Furthermore, in the Mission 
Letter9 addressed to the then Commissioner-designate for Financial Services and the Savings 
and  Investments  Union,  President  Von  der  Leyen  emphasised  the  importance  of  harnessing 
the  potential  of  private  and  occupational  pensions  to  support  EU  citizens  in  securing  their 
retirement and to facilitate the channelling of savings into the wider economy. 

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Draghi, M. (2024), ‘The future of European competitiveness’ 
Letta, E. (2024), ‘Much More Than a Market’ 
Conclusions of the European Council of 17-18 April 2024 
Conclusions of the European Council of 20 March 2025 
Final Report of the High-level group of experts on pensions – December 2019;  
European Court of Auditors, ‘Developing supplementary pensions in the EU’, Special report 14/2025 
Political guidelines for the next European Commission 2024 – 2029 
Mission Letter 

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The Directive 2008/94/EC10 on the protection of employees in the event of the insolvency of 
their  employer  lays  down  that  Member  States  are  to  ensure  the  protection  of  employees’ 
pension entitlements in the event of the employer’s insolvency. 

Directive  2003/41/EC11  on  the  activities  and  supervision  of  institutions  for  occupational 
retirement  provision  (the  first  IORP  Directive)  was  introduced  with  the  goal  of  creating  a 
consistent  prudential  framework  for  occupational  pension  institutions  within  the  internal 
market.  Its  primary  objectives  included  enhancing  the  protection  of  members  and 
the 
beneficiaries,  promoting  sound  governance  and 
fragmentation caused by varying national supervisory and regulatory regimes. By establishing 
minimum common standards and enabling cross-border management of occupational pension 
schemes, the  IORP  Directive  aimed to  create an internal  market  for occupational  retirement 
provision.  It  encouraged  the  prudent  and  efficient  investment  of  pension  assets,  thereby 
supporting the long-term sustainability of pension systems and the mobilisation of savings for 
productive investment within the EU’s economy. 

transparency,  and  addressing 

Directive  2016/234112  (the  IORP  II  Directive),  which  recast  and  repealed  the  first  IORP 
Directive, was driven by the need to enhance the governance, transparency and cross-border 
operational effectiveness of occupational pension funds within the EU. Insights gained from 
implementing  the  first  IORP  Directive  had  highlighted  significant  variances  in  execution 
between  different  Member  States  and  demonstrated  inadequacies  in  the  level  of  protection 
offered  to  members  and  beneficiaries.  In  response,  the  IORP  II  Directive  set  out  more 
stringent  prudential  and  governance  standards,  along  with  improved  disclosure  and 
transparency  requirements,  and  included  measures  to  facilitate  cross-border  pension  scheme 
management.  These  enhancements  were  designed  to  ensure  that  occupational  pensions 
remained  secure,  sustainable  and  efficient  in  the  EU’s  increasingly  mobile  and  integrated 
labour market. 

The ambition to revise the IORP II Directive responds to continuing economic, demographic 
and  policy  challenges,  with  a  renewed  focus  on  citizens’  retirement  security.  It  seeks  to 
strengthen occupational pension funds’ capacity to deliver adequate retirement income, to act 
as stable long-term investors supporting sustainable growth, and to contribute to the resilience 
and  deepening  of  the  EU’s  capital  markets.  The  review  of  the  IORP  II  Directive  therefore 
aims to strengthen the framework for asset-backed pension provision and to foster better long-
term  investment  outcomes  for  members  and  beneficiaries.  It  seeks  to  make  IORPs  more 
relevant  and  accessible  for  Member  States  where  they  are  currently  underdeveloped,  while 
promoting stronger and more sustainable investment performance across the EU. It also aims 
to enhance transparency regarding both costs and returns, reinforce risk management practices 
and remove barriers that currently hinder efficient investment. The amended framework will 
thus  support more efficient  asset allocation and deliver greater value for members. In doing 
so, the proposed reform seeks to raise standards across the supplementary pensions landscape, 
fostering greater value, increased resilience and long-term security for members. It  can help 

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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) 
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,  23.9.2003,  p. 
10https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32003L0041) 
Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the 
activities  and  supervision  of  institutions  for  occupational  retirement  provision  (IORPs)  (recast)  (OJ  L 
354, 23.12.2016, p. 37) 

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address persistent fragmentation, unlock more efficient and productive long-term investment, 
and ensure that a wider range of pension arrangements operate under sound governance and 
transparency standards. The amendment will also contribute to the objectives of the Savings 
and  Investments  Union  by  unlocking  productive  long-term  investment,  enhancing  market 
integration and supporting sustainable growth within the EU.  

• 

Consistency with existing policy provisions in the policy area 

The  EU  has  implemented  several  key  initiatives  to  strengthen  the  supplementary  pension 
landscape: 

•  Directive 98/49/EC  of 29 June 1998 on safeguarding  the supplementary pension 

rights of employed and self-employed persons moving within the EU13; 

•  Directive 2014/50/EU of 16 April 2014 on minimum requirements for enhancing 
worker  mobility  between  Member  States  by  improving  the  acquisition  and 
preservation of supplementary pension rights14; 

•  Directive (EU) 2016/2341 of 14 December 2016 on the activities and supervision 
of institutions for occupational retirement provision (IORPs), known as IORP II, 
which  strengthens  governance, 
information  disclosure,  and  cross-border 
requirements for occupational pension funds15; 

•  Regulation (EU) 2019/1238 of 20 June 2019 on a pan-European personal pension 
product  (PEPP),  establishing  a  voluntary,  standardised  personal  pension 
framework across the EU16.  

This  proposal  builds  on  and  strengthens  the  framework  for  IORPs  set  out  in  the  IORP  II 
Directive,  as  explained  in  more  detail  in  section  3  below.  It  is  part  of  a  broader  pension 
package that includes the review of  Regulation (EU) 2019/1238 (the  PEPP Regulation), the 
Commission  Recommendations  on  Pension  Dashboards,  Pension  Tracking  Systems,  and 
Auto-enrolment,  as  well  as  the  Chapeau  Communication  on  Supplementary  Pensions 
Package.  The  pension  package  is  one  of  the  main  deliverables  under  the  Savings  and 
Investments Union agenda. The proposed changes and recommendations have been drafted to 
ensure consistency across the various pieces of legislation and with the same general objective 
in mind. 

• 

Consistency with other EU policies 

Implementing the Savings and Investments Union requires a comprehensive range of policy 
measures, affecting various dimensions of the EU’s financial system. These policy measures 
can  be  grouped  under  four  distinct  but  inter-related  headings:  (a)  Citizens  and  Savings,  (b) 

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Directive  (EU)  1998/49  of  the  European  Parliament  and  of  the  Council  on  safeguarding  the 
supplementary  pension  rights  of  employed  and  self-employed  persons  moving  within  the  community 
(OJ L 209, 25.7.1998, p. 46) 
Directive (EU) 2014/50 of the European Parliament and of the Council  on minimum requirements for 
enhancing  worker mobility  between  Member  States  by  improving  the  acquisition  and  preservation  of 
supplementary pension rights (OJ L 128, 30.4.2014, p. 1) 
Directive  (EU)  2016/2341  of  the  European  Parliament  and  of  the  Council  on  the  activities  and 
supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37) 
Regulation (EU) 2019/1238 of the European Parliament and of the Council on a pan-European personal 
pension product (PEPP), establishing a voluntary, standardised personal pension framework across the 
EU (OJ L 198, 25.7.2019, p. 1) 

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Investments  and  Financing,  (c)  Integration  and  Scale,  and  (d)  Efficient  Supervision  in  the 
Single Market. Each of these headings is discussed in the following sections. 

The  Pensions  package  falls  under  the  ‘Citizens  and  Savings’  heading.  By  strengthening  the 
framework  for  IORPs,  the  Commission  contributes  to  the  Savings  and  Investments  Union 
objective  of  empowering  citizens  to  save  and  invest  for  their  future  through  transparent, 
competitive, and accessible products. Enhancing the IORP framework supports greater scale, 
consolidation  and  cross-border  efficiencies  in  the  supplementary  pensions  sector  through 
enhanced  supervisory  scrutiny  and  a  broader  thematic  review.  By  facilitating  greater 
participation  of  pension  savers  in  capital  markets,  the  Pensions  package  also  contributes  to 
achieving  the  broader  SIU  objectives  of  mobilising  household  savings  for  productive 
investment; enhancing funding opportunities for the EU economy, also by attracting pension 
fund  money  into  programmes  such  as  InvestEU  and  helping  financial  institutions  achieve 
scale, global competitiveness  and diversification. It thus  supports the  EU’s capacity to  meet 
its long-term investment needs, notably in the context of the green and digital transitions. 

IORPs’  development  and  growth  can  help  channel  more  long-term  capital  into  the  EU’s 
capital markets and, via these to the general economy – at a juncture where the EU’s economy 
urgently  needs  to  deploy  investments  to  shore  up  its  competitiveness.  The  review  of  the 
IORP II  Directive  is  therefore  also  in  line  with  the  Commission’s  broader  strategy  of 
rejuvenating the EU's economy, as outlined in the Competitiveness Compass17. 

The  review  of  the  IORP  II  Directive  is  consistent  with  the  implementation  of  the  European 
Pillar  of  Social  Rights  (EPSR),  specifically  its  Principle  15  which  affirms  the  "right  to 
adequate  old-age  income"  and  "decent  living  standards"  for  retirees.  While  the  IORP  II 
Directive is  primarily  a  prudential  and governance framework, its core aims—strengthening 
the  capacity  of  occupational  funds  to  deliver  adequate  income,  protecting  the  interests  of 
members  and  beneficiaries,  and  improving  transparency  on  both  costs  and  return-  are  all 
essential for delivering sustainable and adequate supplementary pensions. 

2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  bases  for  amending  the  IORP  II  Directive  are  Articles  53,  62  and  114(1)  of  the 
Treaty of the Functioning of the European Union (TFEU). Articles 53 and 62 provide for the 
coordination of national  provisions governing the taking-up and pursuit  of activities as self-
employed  persons  and  the  freedom  to  provide  services.  These  provisions  enable  the 
establishment  and  cross-border  operation  of  IORPs  within  the  internal  market  under 
consistent  prudential,  governance  and  supervisory  standards.  Article  114(1)  allows  the 
adoption of measures for the approximation of national provisions that have as their object the 
establishment and functioning of the internal market. 

Providers’  ability  to  use  the  freedom  to  provide  services  is  still  hampered  by  the  lack  of 
standardisation  of  existing  occupational  pension  products.  The  proposal  therefore  aims  to 
improve key elements of the framework for IORPs to create a more coherent model. This will 
empower  their  members  and  beneficiaries  to  make  full  use  of  the  internal  market,  offering 
them  a  greater  choice  of  providers,  including  in  other  EU  Member  States.  The  proposal 
harmonises  the  core  features  of  IORPs:  enhanced  transparency  regarding  both  costs  and 
returns, risk management practices and efficient investment policies. 

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Competitiveness compass – European Commission 

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• 

Subsidiarity 

According  to  the  subsidiarity  principle,  EU  action  may  only  be  taken  if  the  envisaged  aims 
cannot  be achieved by Member States alone. The  IORP II Directive has been established at 
EU  level  since  2019  because  only  EU  action  can  set  a  common  regulatory  framework  for 
IORPs.  In this regard, this  proposal,  like the  IORP II Directive it seeks to amend, is in  full 
compliance with the subsidiarity principle.  

• 

Proportionality 

Under  the  proportionality  principle,  the  content  and  form  of  EU  action  should  not  exceed 
what is necessary to achieve the objectives of the Treaties.  

IORPs can in principle already be established in all Member States, but they have not realised 
their  full  potential  in  terms  of  channelling  enough  savings  towards  capital  markets  and 
contributing  to  the  Savings  and  Investments  Union.  This  is  particularly  relevant  given  the 
demographic pressures and the increasing need to ensure sustainable and adequate retirement 
income.  

The framework established by the IORP II Directive has not achieved sufficient scale which 
is a key condition for improving long-term outcomes for members and beneficiaries. The staff 
working document accompanying this proposal therefore examined several policy options. 

The  ‘no  EU  action’  scenario  would  fail  to  meet  the  EU’s  objectives.  However,  a  full 
harmonisation of national occupational pension regimes would be disproportionate, given the 
diversity of national markets and the varying levels of development of pension systems. 

In this  context, a targeted revision of the  IORP framework  is a proportionate response. The 
proposed approach complements existing national regimes, but also ensures a sufficient level 
of  harmonisation  to  facilitate  scale  and  enhance  investment  outcomes.  The  key  features  – 
enhanced transparency of costs and returns, reinforced robust risk management practices, and 
removal of barriers that presently hinder efficient investment – have been designed to ensure 
sufficient consumer protection without imposing unnecessary regulatory burdens.  

The  administrative  burden  of  the  proposal  is  expected  to  remain  limited  because  it  merely 
adjusts the features of existing EU-wide rules for IORPs. These entities are already subject to 
regulatory  oversight  by  national  competent  authorities  (NCAs)  under  existing  sectoral 
frameworks.  Any  new  reporting  obligations  would  be  proportionate  to  the  risks  of  a  rising 
cross-border activity and would support effective market monitoring and consumer protection. 
Overall, the proposal would streamline existing practices across the EU. 

• 

Choice of the instrument 

Thise proposal is an amendment to the IORP II Directive. The instrument chosen is therefore 
an amending Directive because no alternative means – legislative or operational – can be used 
to attain the objectives of this proposal.  

3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

OF-EX-POST 

EVALUATIONS, 

STAKEHOLDER 

Stakeholder consultations 

The Commission launched a targeted public consultation from 13 June 2025 until 29 August 
2025,  seeking  feedback  on  possible  revisions  to  the  IORP  II  Directive.  The  consultation 

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received a total of 112 submissions from a diverse group of stakeholders, including business 
associations,  companies,  consumer  organisations,  NGOs,  public  authorities,  and  citizens, 
representing  11  EU  Member  States  and  two  non-EU  countries.  Stakeholders  indicated  that 
investment  flexibility  and  diversification  would,  along  with  strong  governance  and  greater 
transparency, improve the current framework. 

The Commission launched a Call for Evidence on 23 June 2025, with a deadline of 21 July 
2025, to collect general comments, opinions, and views on improving the existing framework 
for supplementary pensions and to share evidence on best practices. The Call received a total 
of  47  submissions,  amounting  to  35  unique  responses,  from  various  organisations,  such  as 
business and employer associations, NGOs, consumer organisations, and citizens, from 12 EU 
Member States and four non-EU countries. Overall, the vast majority of respondents agreed 
that  improvements  to  supplementary  pensions  are  necessary  in  order  to  unlock  their  full 
potential to benefit of EU's citizens and economy.  

• 

Collection and use of expertise 

On  28  September  2023,  EIOPA  provided  technical  advice  for  the  review  of  the  IORP  II 
Directive18. It recommended (i) updating the IORP regulatory framework to address the shift 
from defined benefit to defined contribution pensions and socio-environmental challenges; (ii) 
enhancing  cost  transparency,  sustainability  in  investments  and  proper  regulation  of  defined 
benefit schemes; and (iii) improving proportionality measures. 

On 16 June 2025, the Commission hosted a stakeholder forum19 to explore emerging trends in 
retirement  provision  across  the  EU.  This  forum  highlighted  best  practices  from  Member 
States  and paved the way for sharing successful  strategies across the  EU. The  reality  check 
showcased success stories on second and third pillar pensions and explored how best practices 
can  be  used  as  guideposts  for  further  reforms.  Discussions  obtained  feedback  from  all 
stakeholders active in providing retirement products. The participants agreed that a review of 
the IORP II Directive was necessary to improve outcomes for retirees. 

EIOPA submitted technical input20 requested by the Commission to support the development 
of  supplementary  pensions  on  5  September  2025  and  enhance  the  supplementary  pension 
system. EIOPA advocated (i) stronger supervision, (ii) the use of a more risk-based approach 
to  foster investment  opportunities in  alternative  assets, and  (iii) clarification  of the scope  of 
the IORP II Directive in order to further unlock the benefits of long-term savings.  

• 

Impact assessment 

The  proposal  is  supported  by  a  Staff  Working  Document  that  assessed  the  impact  of  the 
proposed amendments.  

The Staff Working Document examines four options for the proposed amending Directive: 

Option 1 would maintain the current framework of the IORP II Directive unamended and rely 
on  slow,  organic  growth  to  deliver  scale  and  improvements  over  time.  This  option  was 
discarded  because  of  the  need  to  strengthen  EU  citizens’  supplementary  pensions  act  as 
described above. 

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Technical advice for the review of the IORP II Directive, EIOPA 
Stakeholder forum & reality check on retirement savings 
Technical input for the reviews of the IORP II Directive and the PEPP Regulation in the context of the 
Savings and Investments Union, EIOPA 

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Option 2 would clarify the prudent person principle. This clarification would promote a shift 
in the focus of IORPs’ investment policies away from simplistic conservative asset allocations 
neglecting  the  return-leg  of  pension  funds  objectives  toward  more  balanced  risk-return 
investment  strategies  that  (i)  pursue  long-term  value  for  pension  scheme  members  by 
diversifying risks, including across asset classes, and (ii) are guided by sound governance, and 
the knowledge and ability to manage the risks undertaken. It should be stressed that achieving 
adequate  scale  enhances  the  ability  of  IORPs  to  diversify  effectively,  manage  risks 
holistically,  and  access  a  broader  set  of  investment  opportunities,  while  also  maintaining 
sound governance and risk management standards. 

Option 3 would amend the IORP II Directive to strengthen supervisory oversight, governance 
standards  and  transparency,  while  relying  primarily  on  supervisory  dialogue  and  moral 
suasion  to  encourage  improvements  in  scale,  efficiency  and  scheme  quality.  Under  this 
approach,  NCAs  use supervisory  measures  and would  carry out  regular thematic reviews  of 
key performance areas such as investment results, cost efficiency, indexation fulfilment, and 
any  curtailment  of  benefits.  These  reviews  would  also  assess  the  alignment  of  investment 
strategies with pension fund obligations and the competence of trustees or boards overseeing 
the  schemes.  Once  plans  to  remedy  shortcomings  have  to  be  agreed  and  acted  upon,  that 
process  could  –  where  necessary  –  include  consideration  of  potential  means  to  scale  up. 
Transfer rules would be simplified in order to make the IORP II framework more accessible, 
particularly in Member States where the occupational pension sector remains underdeveloped.  

Beyond moral suasion, this option would implement the main elements of EIOPA’s technical 
recommendations with the aim of progressively improving investment practices, transparency 
and governance across supplementary pension schemes. The focus would be on strengthening 
risk management frameworks, improving disclosure of costs and returns, and supporting more 
sustainable  and  balanced  investment  strategies.  The  reform  would  also  seek  to  address 
structural  barriers that limit  efficiency and scale, such as fragmentation, limited cooperation 
between  schemes,  and  uneven  supervisory  capacity.  These  measures  would  not  radically 
transform  the  system  in  the  short  term,  but  they  would  gradually  improve  the  performance, 
sustainability  and  efficiency  of  IORPs.  Over  time,  the  framework  would  support  more 
effective cross-border operation, better investment outcomes and a higher level of protection 
for members and beneficiaries. 

interventions 

supervisory  practices,  and 

Option  4  would  retain  all  the  elements  of  Option  3,  including  thematic  reviews,  nudges, 
improved 
implementation  of  most  of  EIOPA’s 
the 
recommendations.  However,  it  would  go  further  by  introducing  binding  regulatory 
to  address  persistent  structural 
requirements  and  specific  supervisory 
inefficiencies.  One  key  measure  would  be  the  establishment  of  a  mandatory  minimum 
efficient scale for IORPs. This could include providing templates for winding up or merging 
schemes in  cases  where  the minimum  efficiency  scale and performance are not  achieved.  It 
could also involve the mandatory appointment of scheme trustees if existing vacancies are not 
promptly  filled  or  if  current  officeholders  lack  the  necessary  skills  required  for  effectively 
managing  an  investment  portfolio  strategy.  However,  this  approach  places  significant 
demands  on  supervisory  capacities  and  may  expose  supervisors  to  liability  risks  if  pension 
providers  seek  judicial  review.  In  addition,  the  establishment  of  a  mandatory  minimum 
efficient scale for IORPs would require significant time and resources, while the optimal scale 
could  still  vary  from  one  IORP  to  another.  Such  a  measure  would  also  run  counter  to  a 

EN 

8 

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market-driven  approach  by  mandating  ‘top-down’  consolidation  that  is  not  compatible  with 
current IORP governance structures21.  

Option 3 is the selected option.  

• 

Fundamental rights 

The  proposal  respects  the  fundamental  rights  and  observes  the  principles  recognised  by  the 
Charter of Fundamental Rights of the European Union, in particular the right to the protection 
of personal data, the right to property, the freedom to conduct a business and the principle of 
equality between men and women. It contributes to the objectives of Article 38 of the Charter 
which provides for a high level of consumer protection. 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  has  no  material  implications  for  the  EU’s  budget.  EIOPA  should  be  able  to 
accommodate  the  additional  coordination  and  supervisory  convergence  tasks,  including  the 
establishment of collaboration platforms, within its existing resources. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The Member States would be required to transpose the Directive within one year of the date 
of  entry  into  force  of  the  amendments  to  the  IORP  II  Directive.  The  Member  States  would 
then communicate texts of the main adopted provisions of national law to the Commission.  

• 

Explanatory documents  

The proposed Directive  would make specific amendments to an existing  Directive. Member 
States should therefore either communicate to the Commission the text of the corresponding 
amendments  to  their  national  provisions  or,  if  they  consider  that  no  such  amendments  are 
necessary,  explain  which  specific  provisions  of  national  law  already  implement  the 
amendments set out in the proposal. 

• 

Detailed explanation of the specific provisions of the proposal 

Article  1  of  the  proposal  amends  Directive  (EU)  2016/2341.  The  specific  provisions  that 
are amended are the following: 

–  Article 4 allows Member States to apply Directive (EU) 2016/2341 to funded institutions 
providing  retirement  benefits  that  are  not  otherwise  covered  by  Union  prudential 
legislation. 

–  Article  9  requires  that  IORPs  undergo  an  authorisation  procedure  by  the  competent 
authority,  which  shall  include  a  prudential  assessment  and  the  preparation  of  a  business 
plan. 

–  Article 9a ensures that IORPs are allowed to operate different pension schemes, including 
those  with  different  investment  policies,  and  to  accept  sponsorship  from  multiple 
sponsoring undertakings within the same pension scheme. 

21 

Even if such a ‘top-down’ approach were possible, the mandatory consolidation could still be subject to 
the approval of the national competition authority whose decision would not be bound by the rules of 
this proposal. 

EN 

9 

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–  Articles  11  and  11a  streamline  the  cross-border  procedures  for  IORPs  by  introducing 
clearer  timelines,  improved  coordination  between  competent  authorities,  as  well  as  a 
simplified  notification  process  for  extending  existing  cross-border  activities  within  the 
same host Member State. 

–  Article  12  simplifies  the  rules  governing  transfers  of  pension  schemes,  reducing  undue 
obstacles  to  consolidation  and  scale  while  ensuring  adequate  protection  of  members  and 
beneficiaries. 

–  Article 14 provides that competent authorities shall have the power to allow underfunding 
for a limited period, determined under national law, which in any case should not exceed 
ten years, and removes additional requirements for cross-border IORPs. 

–  Article 17 empowers the Commission to adopt a delegated act to amend the numbers and 
percentage  values  of  the  required  solvency  margin  in  order  to  adapt  to  market 
developments. 

–  Article  18a  requires  IORPs  which  are  not  subject  to  risk-based  regulatory  own  funds 
requirements  and  which  underwrite  biometric  risks  or  provide  guarantees  to  carry  out  a 
stress  test  at  least  every  three  years,  assessing  their  capacity  to  meet  obligations  under 
adverse  market  and  demographic  scenarios.  Competent  authorities  may  require  more 
frequent testing where vulnerabilities are identified. The provision specifies standard stress 
scenarios and allows Member States to impose longer projection horizons or more severe 
assumptions.  The  article  also  provides  that  where  stress  test  results  indicate  insufficient 
assets  or  available  solvency  margins,  IORPs  shall  submit  a  convergence  plan  outlining 
corrective  measures.  Ultimately,  competent  authorities  may  require  higher  solvency 
margins if the plan is not credible or not submitted.  

–  Article  19  introduces  a  more  principles-based  prudent  person  principle  and  restricts  the 
ability to set out more detailed rules to schemes where members and beneficiaries bear the 
investment  risk,  with  no possibility to restrict the types of  assets in  which an  IORP may 
invest.  This  does  not  impinge  on  the  possibility  of  competent  authorities  to  require 
restrictions  where  risks  are  borne  by  the  members  and  beneficiaries  and  as  long  as  such 
restrictions do not amount to blank prohibitions. 

–  Article 21 provides that the system of governance must comprise an effective mechanism 

for managing conflicts of interest and include a compliance function. 

–  Article 22 strengthens the fit and proper requirements. The qualifications, knowledge and 
experience  of  the  members  of  the  administrative,  management  or  supervisory  body  shall 
continue to be collectively sufficient to enable them to perform their duties effectively. By 
contrast,  the  requirements  are  reinforced  for  the  persons  who  effectively  run  the  IORP, 
who shall individually meet the required standards of fitness and propriety. 

–  Article  26  provides  that  the  findings  and  recommendations  of  the  internal  audit  shall  be 
reported to the administrative, management or supervisory body, which shall determine the 
appropriate  actions  to  be  taken  in  respect  of  each  finding  and  recommendation  and  shall 
ensure their effective implementation. 

–  Article 28 ensures that IORPs establish a written policy for own-risk assessment containing 
the  processes  and  procedures  for  carrying  out  the  assessment,  the  frequency  of  the 
assessment and the methods. 

–  Article  30  requires  that  the  statement  of  investment  policy  principles  clearly  set  out 
investment  objectives  consistent  with  each  scheme’s  retirement  income  goals  and  define 

EN 

10 

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tolerances for deviations from the asset allocation and performance objectives, in line with 
the OECD Core Principles of Private Pension Regulation and its Implementing Guidelines. 

–  Article 33 ensures that, in the case of a pension scheme where members and beneficiaries 
fully bear the investment risk, safe-keeping of assets and oversight duties are reinforced. 

–  Articles  36  to  44  reinforce  the  information  to  members  and  beneficiaries  during  the 
accumulation and decumulation phases. In particular, Article 37a requires IORPs to share 
relevant information with pension tracking systems to enhance transparency and facilitate 
member and beneficiaries’ awareness of their entitlements. 

–  Article 44a introduces an explicit duty of care for IORPs, requiring them to act honestly, 

fairly and professionally in the best interests of members and beneficiaries. 

–  Articles 44c and 44d require IORPs to establish effective complaints-handling procedures 
and  Member  States  to  ensure  the  availability  of  adequate,  independent  and  impartial 
dispute resolution bodies, including for cross-border cases. 

–  Articles 45 to 51 strengthen supervision and enhance the powers of competent authorities. 
In particular,  Article  49a  introduces  a  regular supervisory dialogue aimed  at  encouraging 
strategic reflection on the long-term adequacy, efficiency and sustainability of the IORP. 

–  Articles 6, 7, 13, 16, 36, 47, 50 and 51 recognise that in some Member States, IORPs are 
allowed  to  provide  personal  pension  products,  including  the  pan-European  Personal 
Pension Product (PEPP), and ensure that the prudential framework reflects this possibility 
to  promote  coherence,  sound  organisation  and  effective  supervision  across  all  forms  of 
retirement provision. 

–  Articles  19,  21,  23  to  26,  28,  47  and  49  are  amended  so  that  references  to  ‘size,  nature, 
scale  and  complexity’  are  replaced  by  ‘nature,  scale  and  complexity’,  as  ‘size’  is  not  an 
appropriate  criterion  for  IORPs,  whose  prudential  and  governance  requirements  should 
reflect  their  risk  profile  rather  than  their  absolute  size,  in  line  with  the  principle  of  risk-
based supervision. 

Other provisions are modified for updates and fixes.  

Article  2  of  the  proposal  amends  Directive  (EU)  2016/97.    It  ensures  that  members  and 
beneficiaries of occupational pension arrangements operated by insurance undertakings have, 
at  least,  access  to  the  same  information  as  members  and  beneficiaries  as  in  the  case  of 
insurance 
that 
arrangements  operated  by  IORPs,  and 
intermediaries  have  an  appropriate  legal  basis  to  share  information  with  pension  tracking 
systems. 

insurance  undertakings  and 

Article  3  of  the  proposal  introduces  grandfathering  arrangements,  so  that  IORPs 
registered or authorised under Directive (EU) 2016/2341 prior to the change in authorisation 
rules do not need to seek a new authorisation. 

EN 

11 

  EN 

 
2025/0362 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Directives (EU) 2016/2341 and 2016/97 as regards the strengthening of the 
framework for occupational retirement provision 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 53, Article 62 and Article 114(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee1, 

After consulting the European Data Protection Supervisor, 
Acting in accordance with the ordinary legislative procedure2, 

Whereas: 

(1) 

In  view  of  the  ageing  population  of  the  European  Union  and  the  rising  dependency 
ratio,  strengthening  complementary  sources  of  retirement  income  has  become 
indispensable  to  preserve  intergenerational  solidarity,  social  cohesion  and  the  long-
term stability of pension systems across the Union. 

(2)  While  the  organisation  of  pension  systems  remains  a  national  competence,  the 
adequacy  and  financial  sustainability  of  pensions  are  of  common  concern  for  the 
stability  and  cohesion  of  the  Union.  Ensuring  that  citizens  have  access  to  well-
designed  personal  pension  products  contributes  both  to  individual  financial  security 
and to the resilience of the Union’s economy. 

(3) 

Despite being  among  the world’s highest savers, Union households still hold  a large 
share  of  their  financial  wealth  in  short-term  bank  deposits  with  limited  returns. 
Developing  attractive  occupational  and  personal  pension  products  can  help  mobilise 
those  savings  for  long-term  investment,  generating  higher  returns  for  savers  and 
channelling  capital  towards  productive  uses  that  support  growth,  innovation  and  the 
green and digital transitions. 

(4) 

Appropriate regulation and supervision at Union and national level  remain important 
for  the  development  of  safe  and  secure  occupational  retirement  provision  across  all 
Member  States.  Directive  (EU)  2016/2341  of  the  European  Parliament  and  of  the 

1 
2 

OJ C […], […], p. […]. 
Position of the European Parliament of ........ and decision of the Council of ....... 

EN 

12 

  EN 

 
 
(5) 

Council3 has contributed to  a more harmonised prudential  framework for institutions 
for  occupational  retirement  provision  (IORPs).  However,  the  supplementary  pension 
sector  remains  underdeveloped  in  many  Member  States,  which  could  jeopardise  the 
financial  security  of  citizens,  in  particular  in  light  of  ongoing  demographic  trends 
within  the  Union.  As  part  of  strong  multi-pillar  pension  systems,  developed  in 
dialogue  with  social  partners,  it  is  essential  to  support  the  further  uptake  of 
supplementary pensions such as IORPs and to help deliver better outcomes for long-
term savers. This requires policy action both at national and at Union level. 

The  Savings  and  Investments  Union  (SIU)  announced  by  the  Commission  in  its 
Communication of 19 March 20154 aims to enable citizens to save and invest for their 
future, channel investments towards the priorities of the Union, deepen integration and 
scale in the Union’s capital markets, and ensure effective supervision across the single 
market. Among those four strands, helping citizens save and invest for their future is at 
the  heart  of  the  SIU’s  ambition.  Ensuring  that  Union  citizens  can  build  adequate 
retirement income is  one of the most concrete  ways  in  which the Union  can make a 
difference in people’s lives. The work on supplementary pensions, and in particular on 
occupational pensions, embodies this citizen-centred approach.  

(6)  With  approximately  three  trillion  euros  in  assets  under  management,  institutions  for 
occupational  retirement  provision  (‘IORPs’)  play  an  essential  role  in  the  Union’s 
financial  system  but  tend  to  be  less  active  in  listed  equity,  private  equity,  venture 
capital and infrastructure markets. Provided that investments in equity and alternative 
asset classes are prudently managed, such investments can be a valuable component of 
their  portfolios,  offering  diversification,  higher  long-term  returns  for  pension  savers 
and  protection  against  inflation,  while  also  providing  crucial  funding  for  the  real 
economy. It is therefore important to ensure that there are no undue regulatory barriers 
to such investments. 

(7) 

The  review  of  Directive  (EU)  2016/2341  builds  on  the  European  Insurance  and 
Occupational  Pensions  Authority  (EIOPA)’s  2023  technical  advice  for  the  review  of 
the  IORP  II  Directive5  and  its  2025  ‘technical  input  on  the  review  of  the  IORP  II 
Directive  and  the  PEPP  Regulation  in  the  context  of  the  Savings  and  Investments 
Union’6.  It  also  takes  into  account  recent  findings  and  recommendations  from  the 
Special  Report  14/2025  of  the  European  Court  of  Auditors  concerning  the 
development  of  supplementary  pensions  in  the  Union7,  as  well  as  the  OECD  Core 
Principles  of  Private  Pension  Regulation8,  which  set  out  internationally  recognised 
standards for the governance, transparency and supervision of occupational pensions.  

(8) 

Achieving  sufficient  scale  is  often  a  prerequisite  for  the  efficient  and  sustainable 
functioning of IORPs. Smaller IORPs may face higher administrative and investment 
costs,  limited  diversification,  and  difficulties  in  attracting  or  retaining  the  necessary 

3 

4 

5 
6 

7 
8 

Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the 
activities  and  supervision  of  institutions  for  occupational  retirement  provision  (IORPs)  (recast)  (OJ 
L 354, 23.12.2016, p. 37, ELI: http://data.europa.eu/eli/dir/2016/2341/oj). 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Central Bank, the European Economic and Social Committee and the Committee of the 
Regions of 19 March 2025, COM(2025) 124 final. 
See EIOPA’s Technical advice for the review of the IORP II Directive 
See EIOPA’s Technical input for the reviews of the IORP II Directive and the PEPP Regulation in the 
context of the Savings and Investments Union. 
See the Special report 14/2025 of the European Court of Auditors  
See OECD Core Principles of Private Pension Regulation 

EN 

13 

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professional expertise. Greater scale can help mitigate those constraints by improving 
risk  pooling,  governance  capacity,  and  access  to  a  broader  range  of  investment 
opportunities,  thereby  contributing  to  more  stable  and  cost-effective  outcomes  for 
members and beneficiaries.  

(9) 

Directive  (EU)  2016/2341,  however,  has  not  been  sufficiently  effective  in  fostering 
economies  of scale, resulting  in  pension providers that are often too  small to  benefit 
from  diversification  or  efficiency  gains,  and  therefore  expose  members  and 
beneficiaries to higher costs and lower net returns. It is therefore necessary to facilitate 
such economies of scale. 

(10)  Directive  (EU)  2016/2341  should  apply  to  all  IORPs,  unless  they  are  expressly 
excluded pursuant to Article 2(2). Its application should reflect the objectives pursued 
by that Directive and the diversity of arrangements within Member States, and should 
be implemented in a manner that recognises the full spectrum of existing occupational 
pension provision. 

(11) 

(12) 

In  some  Member  States,  national  law  provides  that  IORPs,  despite  having  legal 
personality,  are  to  be  operated  by  authorised  entities  responsible  for  acting  on  their 
behalf. It is therefore appropriate that Article 2(1) of Directive (EU) 2016/2341 refers 
explicitly  not  only  to  situations  where  IORPs  do  not  have  legal  personality,  which 
should  continue  to  be  covered,  but  also  to  those  cases  where  IORPs  have  legal 
personality yet, in accordance with national law, are to be operated by such authorised 
entities.  

In certain Member States, responsibility for the operation of an IORP may be shared 
between the IORP itself and the authorised entity acting on its behalf, each performing 
distinct  but  complementary  functions.  The  application  of  Directive  (EU)  2016/2341 
should  be  coherent  with  that  allocation  of  responsibilities  under  national  law  and 
ensure  that  all  those  responsible  are  fully  subject  to  its  requirements,  irrespective  of 
the  legal  form  of  the  IORP.  This  situation  should  however  be  distinguished  from 
outsourcing as referred to in Article 31 of that Directive, since the shared exercise of 
responsibilities in these instances stems from the institutional structure of the IORP as 
defined  under  national  law  and  not  from  a  contractual  outsourcing  of  functions. 
Member States should also ensure that the assets of IORPs are legally separate from 
those of the authorised entities operating them.  

(13)  The determination of whether an institution qualifies as an IORP should depend on the 
activities carried out, irrespective of its legal form or designation under national law. 
In  several  Member  States,  employment-related  retirement  provision  is  provided  by 
funded  institutions  which  are  excluded  from  the  scope  of  Directive  (EU)  2016/2341 
pursuant  to  its  Article  2(2),  or  are  otherwise  not  covered  by  that  Directive  without 
being subject to any other Union prudential legislation. Some of those institutions are 
already  covered  by  Regulation  (EU)  2018/231  of  the  European  Central  Bank9  on 
statistical  reporting  requirements  for  pension  funds,  reflecting  their  economic 
importance and the need for comprehensive and consistent information across all types 
of  pension  institutions.  Taken  together,  such  institutions  excluded  from  the  scope  of 
Directive  (EU)  2016/2341  hold  very  substantial  assets  and  constitute  an  important 
component of the overall employment-related retirement landscape alongside IORPs. 

9 

EN 

Regulation  (EU)  2018/231  of  the  European  Central  Bank  of  26  January  2018  on  statistical  reporting 
3, 
(ECB/2018/2) 
requirements 
ELI: http://data.europa.eu/eli/reg/2018/231/oj). 

17.2.2018, 

pension 

funds 

(OJ 

45, 

for 

p. 

L 

14 

  EN 

 
 
In view of their scale and their relevance for financial stability and pension adequacy, 
it  is  important  for  Member  States  to  ensure  that  all  institutions  managing  retirement 
savings, whether occupational or personal, are subject to sound governance, effective 
supervision and prudential requirements commensurate with the nature and magnitude 
of  the  risks  they  bear.  In  light  of  the  solid  framework  provided  by  Directive  (EU) 
2016/2341 and to promote consistency in supervisory practices, ensure a level playing 
field  and  high  standards  of  governance  and  risk  management  across  all  forms  of 
retirement  provision,  while  respecting  the  diversity  of  national  pension  systems  and 
existing  institutional  arrangements,  Member  States  should  have  the  option  to  apply 
that Directive to institutions otherwise excluded from its scope and not covered by any 
other  Union  prudential  framework.  This  is  particularly  relevant  where  the  level  of 
benefits  offered  to  members  and  beneficiaries  depends  on  the  performance  of  the 
institution  in  managing  assets  and  is  not  guaranteed  by  a  public  authority.  Member 
States  should  notify  the  Commission  and  the  European  Insurance  and  Occupational 
Pensions Authority of their use of this option. 

(14) 

In  some  Member  States,  IORPs  may  also  be  allowed  to  provide  personal  pension 
products,  including  the  pan-European  Personal  Pension  Product,  as  reflected  in 
Regulation  (EU)  2019/1238  of  the  European  Parliament  and  of  the  Council10.  To 
ensure  a  clear  and  sound  organisation  of  such  activities,  and  coherent  and  effective 
supervision across different forms of retirement provision, it is therefore appropriate to 
reflect this within Directive (EU) 2016/2341. 

(15)  The  organisation  of  occupational  retirement  provision  may  benefit  from  greater 
flexibility  in  how  IORPs  structure  and  manage  pension  schemes  and  sponsorship 
arrangements.  Therefore,  Member  States  should  ensure  that  IORPs  are  allowed  to 
operate  different  pension  schemes,  including  those  with  distinct  investment  policies, 
and to accept sponsorship from multiple sponsoring undertakings, including within the 
same pension scheme. That flexibility can facilitate the achievement of greater scale, 
thereby enhancing cost efficiency, risk diversification and governance capacity, to the 
benefit of members and beneficiaries. 

(16)  Directive (EU) 2016/2341 distinguishes between the authorisation and registration of 
IORPs but does not define either concept, while requiring Member States to maintain a 
national  register  of  IORPs.  This  has  resulted  in  divergent  supervisory  practices, 
including  cases  where  competent  authorities  do  not  conduct  an  ex  ante  prudential 
assessment, or, in  certain  cases,  where no prudential assessment is  carried out  at  all. 
The  absence  of  a  prudential  assessment  as  part  of  the  registration  or  authorisation 
process  may  undermine  the  proper  functioning  of  the  internal  market  and  the 
protection  of  the  rights  of  members  and  beneficiaries.  To  avoid  regulatory  arbitrage 
and  safeguard  the  interests  of  pension  savers,  all  IORPs  should  be  subject  to  an 
authorisation  procedure  that  includes  an  appropriate  prudential  assessment  by  the 
competent  authority.  In  line  with  EIOPA’s  technical  advice  on  the  review  of  the 
the  OECD 
IORP II  Directive  and  with 
Recommendation on Core Principles of Private Pension Regulation,  the authorisation 
process  should  also  require  IORPs  to  establish  and  maintain  a  business  plan  for  all 
planned activities. 

Implementing  Guidelines  of 

the 

10 

EN 

Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-
1, 
European 
ELI: http://data.europa.eu/eli/reg/2019/1238/oj). 

25.7.2019, 

Personal 

Pension 

Product 

(PEPP) 

198, 

(OJ 

p. 

L 

15 

  EN 

 
 
(17)  To  enhance  effective  and  adaptable  occupational  retirement  provision,  as  well  as 
economies  of  scale,  IORPs  should  be  allowed  to  operate  several  pension  schemes, 
including  those  with  distinct  investment  approaches,  and  to  accept  sponsorship  from 
several undertakings within the same scheme, while ensuring proper management and 
the protection of members and beneficiaries. 

(18)  Experience  with  the  functioning  of  Directive  (EU)  2016/2341  has  shown  that  the 
procedures governing the authorisation and supervision of IORPs, in particular in the 
context  of  cross-border  activities,  can  give  rise  to  delays  and  inconsistencies  across 
Member  States,  which  may  discourage  IORPs  from  engaging  in  or  expanding  their 
cross-border  activities.  To  improve  the  functioning  and  supervision  of  cross-border 
activities  of  IORPs,  the procedural  steps  for  authorisation  and  cross-border  activities 
should therefore be elaborated and streamlined. The timelines should be made clearer 
and exchanges of information between home and host competent authorities should be 
made  faster,  allowing  closer  coordination  including,  where  appropriate,  through  the 
involvement  of  the  European  Insurance  and  Occupational  Pensions  Authority 
(‘EIOPA’). 

(19) 

It is unnecessarily burdensome to impose on an IORP that is carrying out cross-border 
activities in a host Member State full initial cross-border procedures where such IORP 
wishes to extend those activities to additional sponsoring undertakings or schemes in 
the  same  host  Member  State.  Such  an  approach  could  lead  to  duplication  of 
procedures,  increased  administrative  costs  and  delays,  without  improving  the 
protection  of  members  and  beneficiaries.  To  facilitate  proportionate  and  efficient 
supervision and ensure effective cooperation between the competent authorities of the 
home and host Member States, such extensions should be made subject to a simplified 
notification  procedure  to  be  completed  within  one  month.  That  timeline ensures  that 
competent authorities can carry out the necessary coordination and oversight without 
creating undue delays or burdens for IORPs. 

(20)  The rules governing collective transfers of all or part of a pension scheme’s liabilities, 
technical  provisions,  and  other  obligations  and  rights  play  a  key  role  in  supporting 
consolidation  and  the  achievement  of  scale  in  occupational  retirement  provision. 
Where such rules are overly strict, they create undue obstacles to achieving scale and 
facilitating  consolidation,  which  can  be  detrimental  to  the  long-term  interests  of 
savers.  At  the  same  time,  it  is  important  that  members  and  beneficiaries,  or  their 
representatives, can effectively express their views on proposed cross-border transfers. 
To  facilitate  such  transfers,  it  is  therefore  appropriate  to  clarify  and  simplify  the 
applicable Union rules, ensuring that procedures remain transparent, proportionate and 
consistent  with  the  protection  of  members  and  beneficiaries,  while  enabling  greater 
efficiency  and  integration  in  the  internal  market.  This  should  include  provisions  for 
timely notification, approval by the sponsoring undertaking where applicable, and the 
possibility for members and beneficiaries to formally express opposition. 

(21)  For  domestic  collective  transfers  from  one  IORP  to  another,  Member  States  should 
ensure  that  simple,  transparent  and  operationally  efficient  procedures  are  in  place  to 
enable  consolidation  and  restructuring  of  pension  schemes  within  their  territories. 
Such  procedures  should  facilitate  the  attainment  of  scale  and  cost  efficiency  and 
should not be more restrictive than the procedures applicable to cross-border transfers. 

(22)  Member  States  have  the  option  to  allow  temporary  underfunding  of  occupational 
pension  schemes.  Different  Member  States  have  implemented  that  option  in  varying 
ways,  while  others  have  chosen  not  to  use  it,  resulting  in  inconsistencies  that  may 

EN 

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affect the protection of members and beneficiaries. While preventing underfunding is 
important,  an  absolute  prohibition  could,  in  some  cases,  force  abrupt  reductions  in 
pension promises, which may be detrimental to members and beneficiaries. To ensure 
a  balanced  and  proportionate  approach  and  an  adequate  protection  of  members  and 
beneficiaries,  Member  States  should  allow  temporary  underfunding  for  a  limited 
period, determined by national law, which in any case should not exceed ten years. 

(23)  Certain  technical  parameters  in  Directive  (EU)  2016/2341  stem  from  Council 
Directive  79/267/EEC11,  the  first  Life  Insurance  Directive,  and  have  remained 
unchanged  since  their  introduction.  It  is  therefore  appropriate  to  provide  for  the 
possibility  of  their  adjustment  through  delegated  acts,  should  this  be  considered 
necessary to ensure that they remain appropriate in light of market developments and 
supervisory practices. 

(24)  Directive  (EU)  2016/2341  requires  IORPs  to  hold  an  adequate  available  solvency 
margin.  That  solvency  margin  does  not  fully  capture  exposures  to  market  and 
longevity risks, including where the IORP underwrites biometric risk or guarantees a 
given  investment  performance  or  level  of  benefits.  Some  Member  States  require 
IORPs to hold additional risk-based regulatory own funds above the required solvency 
margin.  In  Member  States  where  such  risk-based  requirements  do  not  exist, 
comparable  protection  for  savers  and  beneficiaries  should  be  ensured.  In  particular, 
IORPs  covering  biometric  risk  or  offering  guarantees  and  which  are  not  subject  to 
risk-based  capital  requirements,  should  carry  out  regular  stress  tests  to  assess  their 
ability to remain funded over a long-term horizon, including under adverse market and 
demographic  scenarios,  and  competent  authorities  should  have  the  power  to  require 
remedial actions where an underfunding is identified. 

(25)  Private assets, including private equity, private debt and venture capital, can improve 
the  risk-return  characteristics  of  investment  portfolios  by  enhancing  diversification 
and  potentially  delivering  higher  long-term  returns.  However,  such  assets  are  often 
more  complex  to  value  and  to  assess  in  terms  of  risk,  hence  requiring  substantial 
professional  expertise.  Pursuant  to  Article  19  of  Directive  (EU)  2016/2341,  IORPs 
should  invest  in  the  best  long-term  interests  of  members  and  beneficiaries  and  in 
accordance  with  the  prudent  person  rule.  That  rule,  however,  is  not  sufficiently 
specified,  and  several  Member  States  have  introduced,  in  line  with  that  Article, 
detailed and sometimes restrictive investment limits. Such across-the-board constraints 
may prevent well-governed institutions with adequate risk-management capacity from 
investing efficiently in alternative assets. It should therefore be laid down that the key 
investment framework is a risk-based prudent person principle, allowing institutions to 
invest in any type of asset, provided that they can properly identify, measure, monitor, 
manage and report the associated risks. Accordingly, as a safeguard for members and 
beneficiaries, the possibility for Member States to apply investment restrictions should 
be limited to cases where the investment risk is borne by members and beneficiaries, 
and, those restrictions should not result in a blanket prohibition on investing in certain 
asset  classes.The  chapeau  communication  of  19  November  202512  provides  further 

11 

12 

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, ELI: http://data.europa.eu/eli/dir/1979/267/oj) 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the  European  Central  Bank,  the  European  Economic  and  Social  Commitee  and  the  Committee  of  the 
Regions  –  Enhancing  the  capacity  of  the  EU  supplementary  pension  sector  to  improve  retirement 

EN 

17 

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non-binding guidance on the application of the prudent person principle, including on 
how it should support the efficient allocation of long-term savings.  

(26)  Experience  has  shown  that  the  governance  requirements  set  out  in  Directive  (EU) 
2016/2341  do  not  always  ensure  consistent  standards  of  sound  management  and 
effective  oversight  across  IORPs.  In  particular,  differences  in  internal  control 
functions, the handling of conflicts of interest, and the composition and effectiveness 
of  administrative,  management  or  supervisory  bodies  may  weaken  the  protection  of 
members  and  beneficiaries  and  the  integrity  of  pension  scheme  management.  To 
enhance  the  resilience,  transparency  and  accountability  of  IORPs,  the  system  of 
governance should therefore be further specified, and competent authorities should be 
equipped  with  the  powers  necessary  to  assess  and,  where  appropriate,  strengthen 
IORPs’ governance systems. 

(27)  The  effective  and  prudent  management  of  an  IORP  depends  on  the  fitness  and 
propriety of the persons who effectively run the IORP, its administrative, management 
or  supervisory  bodies,  and  key  function  holders,  including  those  to  whom  functions 
have  been  outsourced.  Directive  (EU)  2016/2341  refers  to  the  concept  of  collective 
fitness  for  those  who  effectively  run  the  IORP.  Further  clarification  is  needed  to 
ensure  that  this  concept  is  applied  in  a  manner  consistent  with  the  diversity  of 
governance  structures  across  Member  States.  In  particular,  collective  fitness  should 
apply  where  the  administrative,  management  or  supervisory  body  operates  as  a 
collegiate  body  whose  members  jointly  perform  strategic  or  oversight  functions. 
Where functions are distinct or exercised individually, the assessment of fitness should 
relate  to  each  person’s  specific  role,  responsibilities  and  decision-making  powers. 
Furthermore, the current provisions do not explicitly provide for ongoing monitoring 
or  timely  notification  of  changes,  which  may  also  result  in  gaps  in  governance, 
insufficient oversight of risks, or unaddressed conflicts of interest. To ensure adequate 
protection  of  members  and  beneficiaries  and  effective  supervision  by  competent 
authorities, the requirements for fitness and propriety should be laid down, competent 
authorities should be given the responsibility to assess suitability on an ongoing basis, 
and they should have the power to require the removal of individuals who no longer 
meet those requirements. 

(28)  Effective  risk  management  is  essential  to  ensure  the  sound  and  prudent  operation  of 
IORPs and to protect members and beneficiaries. Operational and structural choices of 
IORPs,  including  participation  in  pooled  investment  structures,  shared  services,  or 
transfers,  can  affect  their  overall  risk  profile.  To  ensure  sound  and  prudent 
management, IORPs should assess the risks they are or could be exposed to against the 
risk  tolerance  limits  approved  by  their  management  or  supervisory  body,  taking  into 
account the capacity and appetite for risk of members and beneficiaries. Economies of 
scale and efficiency options can reduce operational and investment risks for members 
and beneficiaries and should therefore be considered in the own-risk assessment. 

(29) 

In  line  with  the  OECD  Core  Principles  of  Private  Pension  Regulation  and  their 
Implementing  Guidelines,  it  is  appropriate  to  further  strengthen  the  requirements  of 
the  statement  of  investment  policy  principles  by  ensuring  that  it  sets  out  clear 
investment objectives consistent with each scheme’s retirement income goal, liabilities 
and  risk  tolerance,  defines  performance  objectives  and  monitoring  methods,  and 

income  and  supply  long-term  capital  to  the  EU  economy.  [PO  =  please  include  the  number  of  the 
document and the internet link]. 

EN 

18 

  EN 

 
 
addresses the use of complex or alternative asset classes and related counterparty risk. 
Where  members  may  choose  investments,  the  statement  should  also  provide  for  an 
appropriate range of options, including a default one. 

(30)  The pooling of assets can deliver economies of scale, improve investment performance 
and  reduce  costs  for  members  and  beneficiaries.  However,  Article  31  of  Directive 
(EU)  2016/2341  allows  Member  States  to  prohibit  the  outsourcing  of  activities  by 
IORPs,  including  the outsourcing  of investment  management. The use of  that option 
has resulted in regulatory barriers to efficiency gains and economies of scale. A more 
risk-based approach would ensure that outsourcing is generally permitted or required, 
provided that it does not impair the quality of governance, unduly increase operational 
risk, undermine the continuous and satisfactory service to members and beneficiaries, 
or  hinder  effective  supervisory  oversight.  It  should  therefore  be  laid  down  that  that 
Member  States  should  allow,  or  where  appropriate  require,  outsourcing  by  such 
institutions,  without  prejudice  to  opposing  specific  outsourcing  arrangements  on  a 
case-by-case basis on duly justified prudential grounds. 

(31)  Depositaries provide a convenient remedy for safeguarding assets and overseeing the 
management  of  occupational  pension  schemes,  particularly  in  defined  contribution 
schemes  where  members  and  beneficiaries  fully  bear  the  investment  risk.  Under 
Directive (EU) 2016/2341, Member States have discretion to require, as a general rule, 
a depositary or to allow IORPs to perform these functions themselves. That discretion 
has  led  to  inconsistencies  and  supervisory  challenges  in  cross-border  activities. 
Differences in national rules on the types of entities that may act as depositaries and 
the  scope  of  their  responsibilities  may  undermine  effective  prudential  oversight, 
reduce  transparency,  and  increase  the  risk  of  conflicts  of  interest  or  operational 
failures. In recent years, the rules on depositaries laid down in Directive 2009/65/EC 
of the European Parliament and of the Council13 have been updated and strengthened 
to  ensure  a  high  level  of  investor  protection.  Members  and  beneficiaries  of  IORPs, 
who similarly entrust their retirement savings to professional managers, should benefit 
from no less protection than investors covered by Directive 2009/65/EC. Therefore, to 
ensure  consistent  protection  of  members  and  beneficiaries,  enhance  trust  in  the 
pension  system,  and  facilitate  cross-border  activities,  Directive  (EU)  2016/2341 
should require the appointment of a professional depositary for occupational pension 
schemes  where  members  and  beneficiaries  fully  bear  the  investment  risk.  The 
amendments should set out clear rules for such depository on the safekeeping of assets 
and  oversight  duties  for  depositaries,  while  allowing  greater  flexibility  for  other 
schemes and ensuring that competent authorities may not unduly restrict the choice of 
depositaries  established  in  another  Member  State.  However,  to  avoid  unnecessary 
burden  for  IORPs,  Member  States  may  maintain  existing  safe-keeping  measures 
providing a level of protection comparable with depositaries. 

(32)  Fragmented  and 

incomplete 

information  on  accrued  and  projected  pension 
entitlements  makes  it  difficult  for  members  and  beneficiaries  to  obtain  a  clear 
overview  of  their  future  retirement  income,  particularly  when  they  participate  in 
several  supplementary  pension  schemes.  That  lack  of  transparency  can  undermine 
engagement with retirement planning and trust in the pension system. To ensure that 

13 

EN 

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 
32, 
investment 
ELI: http://data.europa.eu/eli/dir/2009/65/oj) 

transferable 

securities 

(UCITS) 

302, 

(OJ 

in 

p. 

L 

19 

  EN 

 
 
savers  receive  comprehensive,  reliable  and  up-to-date  information,  Member  States 
should require IORPs to provide data to national pension tracking systems, where such 
systems exist, in a standardised and interoperable format. Such systems should allow 
members  and  beneficiaries  to  access,  in  a  coherent  and  comparable  manner, 
information on their accrued rights, accumulated capital and projected benefits, while 
ensuring that IORPs remain responsible for the accuracy and completeness of the data 
transmitted. To avoid duplication of reporting requirements for IORPs, the format and 
structure  of  information  should  be  consistent  with  the  information  included  in  the 
pension benefit statements. 

(33)  The Pension Benefit Statement (PBS) is an essential instrument enabling members and 
beneficiaries  to  understand  their  pension  entitlements  over  time  and  across  different 
schemes. It should provide clear, comprehensive, and relevant information that enables 
members  and  beneficiaries  to  assess  their  financial  situation  and  take  any  necessary 
action to secure an adequate pension. Currently, the absence of a uniform approach at 
Member  State  level,  together  with  the  fact  that  most  members  accrue  pensions  with 
multiple  IORPs  during  their  careers,  results  in  PBSs  that  vary  in  format  and 
presentation, thereby limiting comparability and aggregation. Current rules also do not 
require the inclusion of information on the costs, the performance of investments or on 
any  investment  options  available  and  their  corresponding  risks.  To  enhance 
transparency  and  support  informed  decision-making,  it  is  necessary  to  introduce 
requirements for the design of the PBS and on the provision of information on costs, 
investment  returns  and  investment  options.  For  the  same  reason,  it  is  necessary  to 
ensure greater standardisation and, where possible,  alignment with  the PEPP Benefit 
Statement  referred  to  in  Article  36  of  Regulation  (EU)  2019/1238,  while  taking  into 
account  the  defined  benefit  or  defined  contribution  characteristics  of  the  pension 
schemes, and the specificities of occupational pension provision.  

(34)  Persistent  underperformance  of  IORPs  may  reduce  the  value  of  members’  and 
beneficiaries’  accrued  rights  and  undermine  trust  in  supplementary  pensions.  In  line 
with the Implementing Guidelines of the OECD Recommendation on Core Principles 
of  Private  Pension  Regulation,  performance  should  be  comparably  disclosed  and 
assessed  against  clear  and  objective  benchmarks  reflecting  the  investment  policy. 
There is currently no harmonised framework to inform members and beneficiaries of 
underperformance. To address that, IORPs should be required to promptly inform their 
competent  authority  and  provide  evidence  that  the  scheme’s  costs  and  charges  are 
justified and proportionate, and that the scheme is in line with the risk tolerance of its 
members and beneficiaries. Where the competent authority is  not satisfied with  such 
justification  or  underperformance  persists  for  at  least  three  years,  IORPs  should 
communicate  clearly  to  members  and  beneficiaries  about  such  underperformance, 
explain its causes, and outline measures to remedy the situation. Member States should 
ensure the establishment of objective benchmarks for assessing underperformance. 

(35)  With increasing life expectancy, members and beneficiaries may face greater need to 
manage  longevity  risk,  and  retirement  savings  need  to  be  managed  effectively  to 
provide  adequate  income  during  the  decumulation  phase.  Directive  (EU)  2016/2341 
requires  IORPs to provide general information during the pre-retirement and pay-out 
phases  but  does  not  specify  the  type  of  information  needed  to  support  members  and 
beneficiaries 
informed  choices  during  decumulation.  To  enhance 
transparency,  comparability,  and  informed  decision-making,  IORPs  should  therefore 
be  subject  to  minimum  disclosure  requirements  for  the  decumulation  phase.  Such 
disclosures should be clear, accessible, and proportionate, taking into account national 

in  making 

EN 

20 

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specificities,  and  should  cover  pay-out  options,  associated  costs  and  charges, 
applicable taxes, risks, and projections, including for variable annuities. 

(36)  The  shift  from  defined  benefit  pension  schemes  to  defined  contribution  pension 
schemes  places  greater  financial  risk  on  members  and  beneficiaries,  as  variable 
benefits  replace previously  guaranteed benefits.  Members  and beneficiaries  are often 
faced  with  complex  choices  regarding  benefits  or  investments,  and  their  ability  to 
make  appropriate  decisions  can  be  impaired  by  information  asymmetries,  limited 
knowledge  or  understanding,  behavioural  biases,  or  complex  and  inadequate  choice 
environments.  Combining  multiple  choices  further  increases  the  difficulty  for 
members  and  beneficiaries  to  assess  the  potential  effects  of  their  decisions.  IORPs 
play a key role in  safeguarding the long-term  interests of members  and  beneficiaries 
through  prudent  management  of  assets  and  sound  governance.  To  strengthen 
confidence  in  the  system  and  ensure  that  investment  decisions  remain  aligned  with 
members’ best interests, fiduciary duties relating  to risk management and investment 
policy should be reinforced. To enhance protection and  ensure that  pension schemes 
deliver  outcomes  that  members  and  beneficiaries  might  reasonably  expect,  IORPs 
should be subject to a general duty of care. Such duty should require institutions to act 
honestly, fairly, and professionally in the best interests of members and beneficiaries, 
to  seek  adequate,  risk-adjusted  and  cost-efficient  returns  over  the  long  term,  and  to 
provide  guidance  and  safeguards  to  support  informed  and  suitable  decision-making, 
taking into account the nature of the pension scheme, the risks borne by members and 
beneficiaries,  the  responsibilities  of  the  institution,  and,  where  relevant,  the  role  of 
social partners and sponsors. 

income  risk, 

including  retirement 

(37)  Occupational pensions are long-term arrangements on which workers rely to secure an 
adequate  retirement  income.  Members  in  defined  contribution  schemes  face  specific 
risks, 
investment  risk,  costs  and  charges, 
administrative  and  governance  risks,  and  gaps  in  knowledge.  To  design  appropriate 
investment  strategies  and  offer  suitable  investment  options  that  align  with  members’ 
capacity to bear losses and their risk-return preferences, IORPs have a central role in 
assessing  these  risks  from  the  perspective  of  members  and  beneficiaries.  To  support 
informed  decision-making  and  safeguard  members’  interests,  IORPs  should  conduct 
long-term  risk  assessments,  provide  relevant  investment  choices,  and  deliver  key 
information,  including  all  costs  and  charges  and  projections,  taking  into  account 
national specificities.  

(38)  To ensure that members and beneficiaries can effectively exercise their rights and have 
access  to  fair  and  timely  redress,  IORPs  should  establish  effective  complaints-
handling  procedures  and  provide  information  on  available  alternative  dispute 
resolution  mechanisms.  For  the  same  reason,  Member  States  should  have  in  place 
adequate,  independent  and  impartial  alternative  dispute  resolution  bodies,  including 
for cross-border cases, and ensure that competent authorities can receive and respond 
to complaints alleging infringements of Directive (EU) 2016/2341. 

(39)  Differences  in  the  powers,  tools,  and  practices  available  to  competent  authorities 
across  Member  States  may  hinder  effective  supervision  of  IORPs  and  the  timely 
prevention  or  correction  of  infringements.  Without  the  powers  to  obtain  necessary 
information, to require compliance with applicable laws and regulations, to review and 
evaluate  IORPs’  strategies,  processes,  and  reporting  procedures,  or  to  impose 
sanctions,  competent  authorities  may  be  unable  to  ensure  that  IORPs  maintain 
sufficient  financial  resources,  comply  with  governance  and  risk  management 
requirements, or can withstand adverse events or changes in economic conditions. To 

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(40) 

address those risks, Member States should ensure that competent  authorities have all 
necessary  powers  to  obtain  information,  conduct  systematic  and  risk-based  reviews 
and  assessments,  monitor  deteriorating  financial  conditions,  engage  in  regular 
supervisory dialogue, take preventive and corrective measures in a timely manner, and 
impose effective, proportionate, and dissuasive administrative sanctions.  

IORPs  vary significantly in  terms  of scale, operational  efficiency, and organisational 
structure. Smaller or fragmented IORPs may face difficulties in achieving economies 
of scale, engaging in effective asset pooling, or optimising operational and investment 
efficiency. Early identification of structural challenges and vulnerabilities is therefore 
essential  to  ensure  that  IORPs  can  deliver  value  for  members  and  beneficiaries  over 
the  long  term.  Competent  authorities  play  an  important  role  in  fostering  strategic 
reflection  by  IORPs  on  their  long-term  sustainability,  including  on  aspects  such  as 
scale,  organisational  configuration,  and  potential  for  consolidation  or  cooperation 
where  those  are  ways  to  address  identified  shortcomings.  Competent  authorities 
should therefore conduct regular structured supervisory dialogues with IORPs, during 
which  IORPs  can  identify  potential  weaknesses  and  consider  strategic  options, 
including measures to enhance efficiency, scale, and resource sharing, while retaining 
primary  responsibility  for  ensuring  that  members  and  beneficiaries  receive  adequate 
retirement benefits. 

(41)  Without timely, complete, and comparable information, competent authorities may be 
unable to assess compliance, monitor risks, or take preventive and corrective measures 
effectively.  To  address  that  issue,  Member  States  should  ensure  that  competent 
authorities have the powers to require IORPs to submit all information necessary for 
supervision, to carry out on-site inspections, and to obtain detailed reporting on costs, 
charges, and investment returns. 

(42)  The outsourcing of key functions or other activities by IORPs can generate economies 
of scale and bring value or lower costs to members and beneficiaries. However, it may 
also create additional risks and hinder effective supervision. Without access to relevant 
information  and  business  premises,  and  without  cooperation  from  service  providers, 
competent  authorities  may  be  unable  to  monitor  outsourced  activities  or  ensure 
compliance. To address  those risks, Member States  should ensure that IORPs enable 
competent authorities to access data and premises of service providers and to carry out 
on-site inspections directly or through delegated authorities. IORPS should also fully 
cooperate  during  supervision.  To  ensure  effective  cross-border  supervision  of 
outsourced  functions,  EIOPA  should  be  able  to  assist  competent  authorities  in  joint 
on-site inspections. 

(43)  Transparent, comparable, and easily accessible information on the total  annual costs, 
past performance, and risk profiles of pension schemes operated by IORPs is essential 
for  members  and  beneficiaries  to  make  informed  decisions  about  their  retirement 
savings.  Such  disclosure  could  foster  efficiency,  cost-effectiveness,  and  the  potential 
to  achieve  economies  of  scale,  ultimately  benefiting  members  and  beneficiaries.  To 
ensure  comparability  and  accessibility,  competent  authorities  should  publish  that 
information on a single public website for all relevant pension schemes or investment 
options, covering at least the previous ten years. 

(44)  Where  cross-border  activities  are  significant  with  respect  to  the  market  of  the  host 
Member State and require close collaboration between the competent authorities of the 
home Member State and the host Member State, especially where an IORP might risk 
being  in  financial  difficulties  to  the  detriment  of  members  and  beneficiaries,  EIOPA 

EN 

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(45) 

(46) 

should be able to set up and coordinate collaboration platforms, in a similar manner as 
under Directive 2009/138/EC of the European Parliament and of the Council14. 

Insurance  undertakings  and  insurance  intermediaries  can  also  distribute  occupational 
pension products. To ensure that all prospective members, members and beneficiaries 
receive  equivalent  information  and  protection,  such  undertakings  and  intermediaries 
should  be  subject  to  rules  related  to  information  consistent  with  those  applicable  to 
IORPs,  including  obligations  relating  to  the  transmission  of  information  to  pension 
tracking systems.  

In order to attain the objectives set out in Directive (EU) 2016/2341 and this Directive, 
the  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  on  the 
Functioning of the European Union should be delegated to the Commission in respect 
of certain  technical  parameters in  Directive (EU) 2016/2341  stemming from  Council 
Directive  79/267/EEC,  which  have  remained  unchanged  since  their  introduction,  as 
well  as  on  the  Pension  Benefit  Statement.  It  is  of  particular  importance  that  the 
Commission carry out appropriate consultations during its preparatory work, including 
at  expert  level.  The  Commission,  when  preparing  and  drawing  up  delegated  acts, 
should  ensure  a  simultaneous,  timely  and  appropriate  transmission  of  relevant 
documents to the European Parliament and to the Council. 

(47) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  the  provisions  on 
reporting  of  investment  returns,  net  of  investment  costs,  and  all  costs  and  charges 
incurred  in  connection  with  the  IORPs’  activities,  implementing  powers  should  be 
conferred on the Commission. Those powers should be exercised in accordance with 
Regulation (EU) No 180/2011 of the European Parliament and of the Council15. 

(48)  Directives  (EU)  2016/97  and  (EU)  2016/2341  should  therefore  be  amended 

accordingly. 

(49)  Amendments  to  Directive  (EU)  2016/2341  regarding  the  authorisation  of  IORPs 
should  replace  the  current  regime  of  registration  or  authorisation  in  order  to  ensure 
consistent  supervisory  standards  across  the  Union.  However,  it  would  be  too 
burdensome  to  require  all  IORPs  to  apply  for  a  new  authorisation.  IORPs  already 
registered  or  authorised  under  that  Directive  should  be  given  Therefore,  Member 
States  should  provide  for  automatic  recognition  of  IORPs  which  were  already 
registered or authorised under that Directive.  

(50)  Regulation  (EU) 2016/679  of the European Parliament and of the Council  applies to 
the  processing  of  personal  data  for  the  purposes  of  this  Directive.  Member  States 
should ensure that processing of data carried out in application of this Directive fully 
respects Directive 2002/58/EC of the European Parliament and of the Council16 where 
that Directive is applicable. 

14 

15 

16 

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)  (OJ  L  335, 
17.12.2009, p. 1, ELI: http://data.europa.eu/eli/dir/2009/138/oj). 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the  Commission’s 
(OJ  L  55,  28.2.2011,  p.  13, 
implementing  powers 
ELI: http://data.europa.eu/eli/reg/2011/182/oj). 
Directive 2002/58/EC of the European Parliament and of the  Council of 12 July 2002 concerning the 
processing  of  personal  data  and  the  protection  of  privacy  in  the  electronic  communications  sector 

exercise  of 

EN 

23 

  EN 

 
 
 
HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Amendments to Directive (EU) 2016/2341 

Directive (EU) 2016/2341 is amended as follows: 

(1) 

(2) 

(3) 

the  words  ‘registered  or  authorised’  are  replaced  by  ‘authorised’  throughout  the 
Directive; 

the  words  ‘size,  nature,  scale  and  complexity’  are  replaced  by  ‘nature,  scale  and 
complexity’ throughout the Directive; 

the words ‘their size and internal organisation, as well as to the size, nature, scale and 
complexity  of  their  activities’  are  replaced  by  ‘the  nature,  scale  and  complexity  of 
their activities’ throughout the Directive; 

(4) 

Article 2 is amended as follows: 

(a) 

in paragraph 1, the second sentence is replaced by the following: 

‘Where,  in  accordance  with  national  law,  IORPs  are  constituted  in  a  form  under 
which  authorised  entities  are  responsible  for  operating  them  and  acting  on  their 
behalf, Member States shall apply this Directive either to those IORPs or, subject to 
paragraph 2, to such authorised entities, or to both, as appropriate.’; 

(b) 

the following paragraph 3 is added: 

‘3.  Where,  pursuant  to  paragraph  1,  authorised  entities  are  responsible  for 
operating  IORPs  and  acting  on  their  behalf,  Member  States  shall  ensure  that  the 
assets of the IORPs are legally separate from those of the authorised entities.  

For the purposes of the first subparagraph, where the authorised entities referred to in 
paragraph 2, point (b),  operate  IORPs and act  on their behalf, Member States  shall 
not  restrict  such  authorised  entities  established  in  another  Member  State  from 
carrying out those activities.’; 

(5) 

Articles 3 and 4 are replaced by the following: 

‘Article 3 
Application to IORPs operating social security schemes 

IORPs which also operate pension schemes that are considered to be social security 
schemes covered by Regulations (EC) No 883/2004 and (EC) No 987/2009 shall be 
covered  by  this  Directive  in  respect  of  their  retirement  provision  business  not 
covered  by  those  Regulations.  In  that  case,  the  liabilities  and  corresponding  assets 
shall  be  ring-fenced,  and  it  shall  not  be  possible  to  transfer  those  liabilities  and 
corresponding  assets  to  the  pension  schemes  which  are  considered  to  be  social 
security schemes, or vice versa. 

(Directive 
ELI: http://data.europa.eu/eli/dir/2002/58/oj) 

privacy 

and 

on 

electronic 

communications) 

(OJ 

L 

201, 

p. 

37, 

EN 

24 

  EN 

 
 
Article 4 
Optional application 

Member  States  may  apply  some  or  all  of  the  provisions  of  this  Directive  to 
institutions,  irrespective  of  their  legal  form,  operating  on  a  funded  basis  for  the 
purpose of providing retirement benefits: 

(a) 

(b) 

that  are  excluded  from  the  scope  of  this  Directive  pursuant  to  Article  2(2), 
points (a) and (d); or  

that  are  not  covered  by  this  Directive  or  by  Directives  2009/65/EC, 
2009/138/EC, 2011/61/EU, 2013/36/EU and 2014/65/EU.  

In the  case of institutions referred to  in  Article 2(2), point (a),  Member States may 
decide  on  the  application  of  provisions  of  this  Directive  only  insofar  as  that 
application  is  compatible  with  Regulations  (EC)  No  883/2004  and  (EC)  No 
987/2009. 

Where,  in  accordance  with  national  law,  the  institutions  referred  to  in  the  first 
paragraph are operated by authorised entities responsible for  acting on their behalf, 
Member States may decide to apply this Directive either to those institutions or to the 
authorised  entities  responsible  for  operating  them  and  acting  on  their  behalf,  or  to 
both, as appropriate. 

Member States may decide to apply Articles 11 and 11a under this Article only if all 
the provisions of this Directive apply. 

Member States shall notify the Commission and EIOPA where they make use of the 
options  referred  to  in  in  the  first  and  second  paragraphs,  indicating  the  types  of 
institutions  or,  where  applicable,  authorised  entities  covered  by  the  use  of  those 
options and the provisions of this Directive that apply to them.  

The Commission shall make that information publicly available.’; 

(6) 

Article 5 is amended as follows: 

(a) 

the title is replaced by the following: 

(b) 

 the second paragraph is deleted; 

(7) 

Article 6 is amended as follows: 

‘Small IORPs’; 

(a) 

in  point  (1),  the  wording  ‘and  which  carries  out  activities  directly  arising 
therefrom;’  is  replaced  by  ‘and  which  carries  out  activities  directly  arising 
therefrom,  and,  where  permitted  under  national  law,  personal  retirement 
provision;’; 

(b)  point (3) is replaced by the following: 

‘(3)   ‘sponsoring  undertaking’  means  any  undertaking  or  other  body,  regardless  of 
whether it includes or consists of one or more legal or natural persons, which 
acts as an employer, a professional association or body, or in a self-employed 
capacity or any combination thereof and which offers a pension scheme or pays 
contributions to an IORP;’; 

(c)  point (5) is replaced by the following: 

EN 

25 

  EN 

 
‘(5)   ‘member’  means  a  person,  other  than  a  beneficiary  or  a  prospective  member, 
whose  past  or  current  occupational  activities  entitle  or  will  entitle  him/her  to 
retirement  benefits  in  accordance  with  the  provisions  of  a  pension  scheme, 
except that for the purposes of Titles I, II, III, V and VI, ‘member’ also means 
personal  pension  saver  where  personal  pension  provision  by  IORPs  is 
permitted under national law;’ 

(d) 

the following points (20), (21) and (22) are added: 

‘(20)  ‘service  provider’  means  an  undertaking  to  which  an  IORP  has  outsourced 

activities covered by this Directive; 

(21)  ‘personal  pension  product’  means  a  personal  pension  product  as  defined  in 
Article 2, point (1), of Regulation (EU) 2019/1238 of the European Parliament 
and of the Council*. 

(22) ‘pension tracking system’ means a digital tool, typically a secure web portal or 
mobile  application,  that  provides  individuals  with  an  overview  of  their 
individual  accrued  pension  entitlements,  and  projections  of  future  benefits, 
across the pension schemes of which the individual is a member or beneficiary. 

__________ 

Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 
*  
2019  on  a  pan-European  Personal  Pension  Product  (PEPP)  (OJ  L  198,  25.7.2019,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2019/1238/oj).’; 

(8) 

in Article 7, the second paragraph is replaced by the following: 

‘Where, pursuant to national law, IORPs are authorised to provide personal pension 
products,  all  assets  and  liabilities  corresponding  to  the  personal  pension  provision 
business  shall  be  ring-fenced,  without  any  possibility  to  transfer  those  assets  and 
liabilities to the other retirement provision business of the institution.’; 

(9) 

the following Article 8a is inserted:  

‘Article 8a 
Right of establishment and freedom to provide services 

IORPs  shall  be  allowed  to  provide  services  throughout  the  Union  in 

1. 
accordance with Articles 11 and 11a. 

2.  Member States shall not restrict IORPs from establishing in their territory.’; 

(10) 

Article 9 is amended as follows: 

(a) 

the title is replaced by the following: 

(b)  paragraph 1 is replaced by the following: 

‘Authorisation’; 

‘1.  Member  States  shall  in  respect  of  every  IORP  the  main  administration  of 
which is located in their territory ensure that the IORP is authorised by the competent 
authority and included in a national register. 

The location of the main administration  shall be the place where the main strategic 
decisions of an IORP are made. 

EN 

26 

  EN 

 
Member  States  shall  require  competent  authorities  to  perform  a  prudential 
assessment  as  part  of  the  authorisation  of  IORPs.  The  assessment  shall  take  into 
account the nature, scale and complexity of the activities of the IORP concerned.  

IORPs  seeking  authorisation  shall  prepare  and  submit  to  the  competent  authority  a 
business  plan  for  all  their  planned  activities,  detailing  the  financial  resources 
available to cover current and future operating costs. The business plan shall contain 
projections  of  at  least  three  years  of  the  IORP’s  income  and  expenses  and  a 
breakdown  of  the  IORP’s  operational  costs,  including  where  relevant,  the 
distribution  and  acquisition  costs  and  any  other  elements  to  assist  the  competent 
authorities to assess compliance with the operating requirements. 

The subsequent acceptance of one or more sponsoring undertakings shall not require 
the IORP to undergo a new authorisation procedure.’; 

(c) 

the following paragraph 1a is inserted: 

‘1a.  Any  decision  to  refuse  an  authorisation  shall  state  full  reasons  and  shall  be 
notified to the IORP concerned. 

Without  prejudice  to  Article  48(9),  each  Member  State  shall  make  provision  for  a 
right  of appeal  to  the courts where  its competent authorities have not  dealt with  an 
application for an authorisation within six months of the date of its receipt.’; 

(11) 

the following Article 9a is added: 

‘Article 9a 
Multi-sponsor IORPs 

Member  States  shall  ensure  that  IORPs  are  allowed  to  operate  different  pension 
schemes,  including  those  with  different  investment  policies,  and  to  accept 
sponsorship from multiple sponsoring undertakings within the same pension scheme. 

The  first  paragraph  shall  be  without  prejudice  to  a  decision  by  a  Member  State  to 
require  that  schemes  with  multiple  sponsoring  undertakings  be  operated  under 
Directive 2009/138/EC.’; 

(12) 

Article 10 is amended as follows: 

(a) 

in paragraph 1, the following point (c) is added: 

‘(c)   the  IORP  has  sufficient  financial  resources  to  cover  its  current  and  future 

operating costs.’; 

(b) 

the following paragraph 3 is added: 

‘3.  EIOPA  shall  issue  guidelines,  in  accordance  with  Article  16  of  Regulation 
(EU)  No  1094/2010,  on  the  prudential  assessment  to  be  carried  out  as  part  of  the 
authorisation  of  IORPs,  as  well  as  on  the  requirements  laid  down  in  Titles  II  and 
III.’; 

(13) 

Article 11 is amended as follows: 

(a)  paragraph 2 is deleted; 

(b)  paragraphs 3 and 4 are replaced by the following: 

‘3.  Home Member States shall ensure than an IORP notifies its intention to carry 
out cross-border activity to its competent authority.  

EN 

27 

  EN 

 
Member States shall require IORPs to provide the following information in effecting 
the notification: 

(a)  

(b)  

(c)  

the  name  of  the  host  Member  State(s),  which  shall,  where  applicable,  be 
identified by the sponsoring undertaking or undertakings; 

the  name  and  the  location  of  the  main  administration  of  the  sponsoring 
undertaking(s); 

the main characteristics  of the pension scheme or schemes to  be operated for 
the sponsoring undertaking(s). 

4.  Member  States  shall  ensure  that  a  competent  authority  of  the  home  Member 
State that is notified under paragraph 3 and has  not issued a reasoned decision that 
the administrative structure or the financial situation of the IORP or the good repute 
or professional qualifications or experience of the persons running the IORP are not 
compatible with the proposed cross-border activities, communicates the information 
referred to in paragraph 3 to the competent authority of the host Member State within 
two  months  of  receiving  that  information.  Member  States  shall  ensure  that  the 
competent  authority  of  the  host  Member  State  acknowledges  receipt  of  that 
information without delay. Member States shall ensure that the competent authority 
of the home Member State informs the IORP in writing that the information has been 
received by the competent authority of the host Member State. 

Member States shall ensure that the competent authority of the home Member State 
issues the reasoned decision referred to in the first subparagraph within one month of 
receiving all the information referred to in paragraph 3.’; 

(c)  paragraphs 6 and 7 are replaced by the following: 

IORPs  carrying  out  cross-border  activity  shall  be  subject  to  the  information 
‘6. 
requirements referred to in Title IV imposed by the host Member State in respect of 
the prospective members, members and beneficiaries which that cross-border activity 
concerns, with the exception of the Pension Benefit Statement referred to in Article 
38, which shall be subject to harmonised Union rules in accordance with paragraph 6 
of that Article. 

7. 
Before  the  IORP  starts  to  carry  out  a  cross-border  activity,  the  competent 
authority of the host Member State shall, within one month after having received the 
information  referred  to  in  paragraph  3,  prepare  for  the  supervision  of  the  relevant 
cross-border activities. That preparation shall relate to the requirements of social and 
labour law that are relevant to the field of occupational pension schemes under which 
the pension scheme sponsored by an undertaking in the host Member State must be 
operated and of the information requirements of the host Member State referred to in 
Title  IV  which  shall  apply  to  the  cross-border  activity.  In  addition,  the  competent 
authority  of  the  host  Member  State  shall  through  the  means  referred  to  in  Article 
59(3)  and  (4),  communicate  to  the  competent  authority  of  the  home  Member  State 
the legal provisions referred to in Article 59(1) which are applicable in its territory. 
The competent authority of the home Member State shall immediately communicate 
that information to the IORP.’; 

(d) 

the following paragraph 9a is inserted: 

‘9a.  Member  States  shall  ensure  that  all  procedures  and  formalities  relating  to 
cross-border  activities  and  procedures  can  be  easily  completed  through  electronic 
means.’; 

EN 

28 

  EN 

 
(e)  paragraph 10 is replaced by the following: 

‘10.  The competent authority of the host Member State that has reasons to consider 
that an IORP which conducts activities in its territory is not complying with the host 
Member  State’s  requirements  of  social  and  labour  law  relevant  to  the  field  of 
occupational  pension  schemes  shall  inform  the  competent  authority  of  the  home 
Member State thereof immediately. 

The  competent  authority  of  the  home  Member  State  shall,  in  coordination  with  the 
competent authority of the host Member State, take the necessary measures to ensure 
that the IORP ends the detected breach.’; 

(f) 

in paragraph 11, the following subparagraphs are added: 

‘Member  States  shall  ensure  that  in  their  territories  it  is  possible  to  serve  the  legal 
documents necessary for such measures on IORPs. 

In addition, the competent authority of the home or the host Member State may refer 
the  matter  to  EIOPA  and  request  its  assistance  in  accordance  with  Article  19  of 
Regulation (EU) No 1094/2010. In that case, EIOPA may act in accordance with the 
powers conferred on it by that Article.’; 

(g) 

the following paragraphs 12 and 13 are added: 

‘12.  Paragraphs  10  and  11  are  without  prejudice  to  the  power  of  host  Member 
States to take appropriate and non-discriminatory emergency measures to prevent or 
penalise  irregularities  within  their  territory,  in  situations  where  immediate  action  is 
strictly  necessary  in  order  to  prevent  the  rights  of  members  and  beneficiaries,  and 
where  equivalent  measures  of  the  home  Member  States  are  inadequate  or  lacking. 
That  power  shall  include  the  possibility  of  preventing  IORPs,  insofar  as  is  strictly 
necessary, from operating in the host Member State for the sponsoring undertaking. 

13.  Any measure adopted under paragraphs 10 to 13 involving restrictions on the 
activities  of  IORPs  shall  be  properly  reasoned  and  communicated  to  the  IORP 
concerned without undue delay. The competent  authority  of the host Member State 
that  adopts  such  measure  shall  also  communicate  the  measure  to  the  competent 
authority  of  the  home  Member  State,  and  in  the  context  of  paragraph  11,  third 
subparagraph, to EIOPA.’; 

(14) 

the following Article 11a is inserted: 

‘Article 11a 
Changes in the information notified 

1.  Member  States  shall  ensure  that  in  the  event  of  a  change  in  any  of  the 
particulars  communicated  under  Article  11(3),  points  (b)  or  (c),  an  IORP  gives 
written  notice  of  the  change  to  the  competent  authorities  of  the  home  and  the  host 
Member States at least one month before making the change in order to enable the 
competent  authorities  of  the  home  and  the  host  Member  States  to  fulfil  their 
respective obligations under Article 11. 

2.  Member  States  shall  ensure  that  where  members  and  beneficiaries  fully  bear 
the  investment  risk,  the  notification  of  one  or  more  additional  sponsoring 
undertakings 
to  a  previously  notified  pension  scheme,  or  of  non-material 
amendments  to  the  characteristics  of  that  scheme,  is  subject  to  a  simplified 
notification procedure.’; 

EN 

29 

  EN 

 
(15) 

Article 12 is amended as follows: 

(a) 

the following paragraph 2a is inserted: 

‘2a.  Member States shall ensure that the transferring IORP makes available to the 
members and beneficiaries concerned and, where applicable, to their representatives, 
the information on the conditions of the transfer in a timely manner and before the 
application referred to in paragraph 4 is submitted.’; 

(b)  paragraph 3 is replaced by the following: 

‘3. 

 The cross-border transfer shall be subject to prior approval by: 

(a)   a  simple  majority  of  the  members  and  beneficiaries  concerned,  or  where 

applicable, a simple majority of their representatives; and 

(b)  

the sponsoring undertaking, where applicable. 

For  the  purposes  of  the  first  subparagraph,  point  (a),  the  simple  majority  shall  be 
calculated based on the received responses.  

Member  States  may  provide  that,  for  a  transfer  to  be  approved,  a  participation 
threshold  of  up  to  25  %  of  the  members  and  beneficiaries  concerned  shall  be 
reached.’; 

(c) 

in paragraph 11, the second subparagraph is replaced by the following: 

‘Where the transfer results in a cross-border activity, the competent authority of the 
home  Member  State  of  the  transferring  IORP  shall  also  inform  the  competent 
authority  of  the  home  Member  State  of  the  receiving  IORP  of  the  requirements  of 
social  and  labour  law  relevant  to  the  field  of  occupational  pension  schemes  under 
which the pension scheme must be operated and of the information requirements of 
the host Member State referred to in Title IV which shall apply to the cross-border 
activity. This shall be communicated within a further four weeks.’; 

(16) 

the following Article 12a is inserted: 

‘Article 12a 
Domestic transfers 

Member States shall ensure that transfers between IORPs authorised within the same 
Member State of all or a part of a pension scheme’s liabilities, technical provisions, 
and other obligations and rights, and corresponding assets or cash equivalent thereof, 
are  governed  by  simple  and  transparent  procedures  that  ensure  the  protection  of 
members  and  beneficiaries  and  the  continued  sound  management  of  the  pension 
schemes concerned. 

Such transfers shall be subject  to  prior approval  by the competent  authority, which 
shall verify at least all of the following: 

(a)  

that the information submitted is complete and accurate; 

(b) 

that  the  administrative  structure,  financial  situation,  and  the  good  repute  or 
professional  qualifications  and  experience  of  the  persons  who  effectively  run 
the IORPs concerned are compatible with the proposed transfer; 

(c)  

that  the  long-term  interests  of  members  and  beneficiaries  are  adequately 
protected; 

EN 

30 

  EN 

 
(d)  

that  the  assets  to  be  transferred  are  sufficient  and  appropriate  to  cover  the 
related liabilities, technical provisions, and other obligations and rights. 

Where a Member State makes domestic transfers subject to the prior approval of the 
members  and  beneficiaries  concerned,  the  approval  procedure  shall  not  be  more 
stringent than the procedure set out in Article 12(3).’; 

(17) 

in Article 13, paragraphs 1 and 2 are replaced by the following: 

‘1.  The  home  Member  State  shall  ensure  that  IORPs  operating  pension  schemes 
establish  at  all  times  in  respect  of  the  total  range  of  their  occupational  pension 
schemes  and,  where  permitted  under  national  law,  of  personal  pension  schemes 
distributed  through  IORPs,  an  adequate  amount  of  liabilities  corresponding  to  the 
financial  commitments  which  arise  out  of  their  portfolio  of  existing  pension 
contracts. 

2. 
The home Member State shall ensure that IORPs  operating pension schemes, 
where  they  provide  cover  against  biometric  risks  or  guarantee  either  an  investment 
performance or a given level of benefits, establish sufficient technical provisions in 
respect of the total range of such schemes.’; 

(18) 

Article 14 is amended as follows: 

(a)  paragraph 2 is amended as follows: 

(i) 

in  the  first  subparagraph,  the  introductory  wording  is  replaced  by  the 
following: 

‘Home  Member  States  shall  ensure  that  their  competent  authorities  have  the 
necessary powers to allow an IORP, for a limited period of time, to have insufficient 
assets to cover the technical provisions. In this case, the competent authorities shall 
require the IORP to adopt a concrete and realisable recovery plan with a timeline in 
order to ensure that the requirements of paragraph 1 are met again. The plan shall be 
subject to the following conditions:’; 

(ii) 

the following subparagraph is added: 

‘The  limited  period  of  time  referred  to  in  the  introductory  wording  of  the  first 
subparagraph  shall be determined by national  law and shall in  any case  not  exceed 
ten years.’; 

(b)  paragraph 3 is deleted; 

(19) 

Article 16 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Member States shall require that every IORP referred to in Article 15(1) which 
is authorised in their territory maintains at all times an adequate available solvency 
margin in respect of its entire business which is at least equal to the requirements in 
this  Directive in  order to ensure long-term  sustainability of occupational  retirement 
provision, and, where permitted under national law, of personal retirement vision.’; 

(b) 

in paragraph 4, the second subparagraph is replaced by the following: 

‘The figure referred to in point (a) of the first subparagraph shall not exceed 3,5 % of 
the sum of the differences between, on the one hand, the relevant capital sums of life 
insurance,  occupational  retirement  provision,  and  where  permitted  under  national 
law, personal retirement provision activities and, on the other hand, the mathematical 

EN 

31 

  EN 

 
provisions for all policies for which Zillmerising is possible. The difference shall be 
reduced by the amount of any undepreciated acquisition costs entered as an asset.’; 

(20) 

in Article 17, the following paragraph 7 is added: 

‘7.  The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  64a  to  amend  the  numbers  and  percentage  values  referred  to  in  this  Article 
and in Article 18.’; 

(21) 

the following Article 18a is inserted: 

‘Article 18a 
Internal stress testing 

The competent authorities of the home Member States shall require that IORPs 
1. 
operating  pension  schemes, where  the  IORP  itself,  and  not  the  sponsoring 
undertaking, underwrites the liability to cover against biometric risk, or guarantees a 
given investment  performance or  a given level  of benefits, carry out  a stress  test  at 
least  every  three  years  to  assess  their  ability  to  meet  their  obligations  towards 
members  and  beneficiaries,  including  under  scenarios  representing  adverse  market 
and demographic developments. 

Notwithstanding  the  first  subparagraph,  the  competent  authority  of  the  home 
Member  State  shall  have  the  power  to  require  an  IORP  to  carry  out  the  stress  test 
exercise  more  frequently,  at  least  where  the  results  of  the  stress  tests  of  previous 
years  identify  a  risk  of  not  having  sufficient  and  appropriate  assets  to  cover  the 
technical provisions within the next ten years. 

Member States may also require the IORP to  assess whether its projected available 
solvency  margin  exceeds  its  required  solvency  margin,  or,  where  applicable,  any 
higher level of regulatory own funds required under national law pursuant to Article 
15. 

2. 
For the purposes of paragraph 1, IORPs shall make projections, over the next 
ten financial years from the date of the most recent financial statements, of assets and 
liabilities under each of the following scenarios: 

(a) 

(b) 

(c) 

(d) 

a baseline scenario extending the economic conditions prevailing at the date of 
the most recent financial statements; 

an adverse scenario of permanent relative decrease in interest rates of 40 % or 
absolute decrease of 0,75 percentage points, whichever is more severe, without 
interest rates falling below 0 % or exceeding 3,5 %; 

an adverse scenario of decline in investment returns on non-depreciable assets 
by 30 %;  

a  decrease  in  the  mortality  rates  of  members  and  beneficiaries  at  all  ages  by 
10 %.  

By  way  of  derogation  from  the  first  subparagraph,  Member  States  may  require 
IORPs to: 

(a)  make projections over more than ten financial years; 

(b) 

carry  out  projections  under  adverse  scenarios  that  are  more  severe  than  the 
scenarios set out in the first subparagraph, points (b), (c) or (d); 

(c) 

carry out projections under additional stressed scenarios.  

EN 

32 

  EN 

 
3  Where  the  results  of  the  stress  test  referred  to  in  paragraph  1  indicate  that, 
under  any  of  the  scenarios  referred  to  in  paragraph  2,  an  IORP  would  either  have 
insufficient  assets  to  cover  the  technical  provisions  or,  where  applicable,  have  an 
insufficient available solvency margin to  meet the required solvency margin or any 
higher level of regulatory own funds required under national law pursuant to Article 
15 for any projected year, Member States shall ensure that the competent authority 
requires the IORP to submit a convergence plan.  

That  convergence  plan  shall  set  out  the  measures  that  the  IORP  intends  to  take  to 
restore, over the projection horizon, its ability to maintain sufficient assets to cover 
the technical provisions, or where applicable, to  have an available solvency margin 
exceeding  the  required  solvency  margin,  under  all  the  scenarios  referred  to  in 
paragraph 2.  

Member  States  shall  ensure  that  the  IORP  submits  the  convergence  plan  to  the 
competent authority within three months from the date of carrying out the stress test. 

Where  no  convergence  plan  is  submitted  within  three  months,  or  where  the 
convergence  plan  does  not  contain  credible  actions  to  address  the  underfunding 
identified or, where applicable, the insufficient level of available solvency margin in 
the stress test, Member States shall ensure that competent authorities have the power 
to require the IORP to hold a higher available solvency margin. 

4. 
Paragraph  3  shall  not  apply  where  an  IORP  is  permitted,  pursuant  to  Article 
14(2), to have insufficient assets to cover the technical provisions for a limited period 
of  time.  In  that  case,  Member  States  shall  ensure  that  the  recovery  plan  adopted 
under Article 14(2) reflects the outcome of the stress test referred to in paragraph 1 
of  this  Article  and,  where  necessary,  is  updated  accordingly,  in  particular  when 
determining the measures and the period for restoring full funding. 

5.  Member States may decide not to apply paragraphs 1 to 3 where they require 
IORPs  located  in  their  territory  to  hold  regulatory  own  funds,  in  excess  of  the 
required solvency margin referred to in Article 17, provided that such regulatory own 
funds requirements are risk-based, at least in relation to market and longevity risks.’;  

(22) 

Article 19 is amended as follows: 

(a)  paragraph 1 is amended as follows: 

(a) 

the introductory wording is replaced by the following: 

‘1.  Member  States  shall  require  IORPs  authorised  in  their  territory  to  invest  in 
accordance with the prudent person principle and in particular in accordance with the 
following rules:’; 

(b)  point (b) is replaced by the following: 

‘(b)   within 

take 

the  prudent  person  principle,  IORPs  shall 

into  account 
sustainability  risks,  as  defined  in  Article  2,  point  (22),  of  Regulation  (EU) 
2019/2088 of the European Parliament and of the Council* in their investment 
decisions  and  for  that  purpose,  IORPs  shall  take  into  account  the  potential 
long-term  impact  of  their  investment  strategy  and  decisions  on  sustainability 
factors, as defined in Article 2, point (24), of Regulation (EU) 2019/2088. That 
shall be done in  a proportionate manner, taking into account the nature, scale 
and complexity of the activities of IORPs.’; 

(c)  point (d) is replaced by the following: 

EN 

33 

  EN 

 
‘(d)   the  assets  shall  be  predominantly  invested  on  regulated  markets,  MTFs  or 

OTFs;’; 

(b) 

the following paragraphs 1a to 1d are inserted: 

‘1a.  Member States shall require that, with respect to the whole portfolio of assets, 
IORPs only invest in assets and instruments whose risks the IORP concerned is able 
to properly identify, measure, monitor, manage, control and report, and appropriately 
take into account in the assessment of its overall funding needs and the assessment of 
the risks to members and beneficiaries relating to the paying out of their retirement 
benefits in accordance with Article 28. 

1b.  Member States shall require that assets held to cover the technical provisions 
are also invested in a manner appropriate to the nature and duration of the liabilities 
entered into by the IORP. 

1c.  Member  States  shall  require  that  investment  decisions  of  IORPs  reflect  the 
sustainability  preferences  of  members  and  beneficiaries,  where  IORPs  are  able  to 
gauge  those  membership  preferences  and  to  the  extent  those  preferences  are 
consistent with the investment principles set out in paragraph 1. 

1d.  For  the  purposes  of  paragraph  1c,  sustainability  preferences  shall  mean  a 
member’s, beneficiary’s, or prospective member’s choice as to whether and, if so, to 
what extent, one or more of the following financial instruments are to be integrated 
into his or her investment: 

(a) 

(b) 

(c) 

a financial instrument for which the customer or potential customer determines 
that  a  minimum  proportion  is  to  be  invested  in  environmentally  sustainable 
investments as defined in Article 2, point (1), of Regulation (EU) 2020/852 of 
the European Parliament and of the Council**; 

a financial instrument for which the customer or potential customer determines 
that  a  minimum  proportion  shall  be  invested  in  sustainable  investments  as 
defined in Article 2, point (17), of Regulation (EU) 2019/2088; 

a financial instrument that considers principal adverse impacts on sustainability 
factors,  as  defined  in  Article  2,  point  (24),  of  Regulation  (EU)  2019/2088, 
where qualitative or quantitative elements demonstrating that consideration are 
determined by the customer or potential customer.’; 

(c)  paragraph 6 is replaced by the following: 

‘In  accordance  with  the  provisions  of  paragraphs  1  to  5,  Member  States  may 
empower  the  competent  authority,  for  IORPs  authorised  in  their  territories,  to  lay 
down more detailed rules, provided they are prudentially justified.  

Any  such  rules  shall  be  applied  only  where  the  investment  risk  is  borne  by  the 
members  and  beneficiaries.  However,  in  such  cases,  IORPs  shall  not  be  prevented 
from:  

(a)    investing up to 70 % of the assets  covering the technical  provisions or of the 
whole portfolio for schemes in which the members bear the investment risks in 
shares, negotiable securities treated as shares and corporate bonds admitted to 
trading on regulated markets, or through MTFs or OTFs, and deciding on the 
relative weight of those securities in their investment portfolio; 

EN 

34 

  EN 

 
(b)  

(c)  

(d)  

investing  up  to  30  %  of  the  assets  covering  technical  provisions  in  assets 
denominated  in  currencies  other  than  those  in  which  the  liabilities  are 
expressed; 

investing in instruments that have a long-term investment horizon and are not 
traded on regulated markets, MTFs or OTFs; 

investing in  instruments that are issued or guaranteed by the EIB provided in 
the  framework  of  the  European  Fund  for  Strategic  Investments,  European 
Long-term  Investment  Funds,  European  Social  Entrepreneurship  Funds  and 
European Venture Capital Funds.’; 

(d)  paragraphs 7 and 8 are deleted; 

___________________________________________ 

* 
Regulation (EU) 2019/2088 of the European Parliament and of the  Council of 27 November 
2019 on sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1, 
ELI: http://data.europa.eu/eli/reg/2019/2088/oj).; 

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on 
** 
the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 
2019/2088 (OJ L 198, 22.6.2020, p. 13, ELI: http://data.europa.eu/eli/reg/2020/852/oj). 

(23) 

Article 21 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Member States shall require all IORPs to have in place an effective system of 
governance which provides for the sound and prudent management of their activities. 
That system shall at least have:  

(a) 

(b) 

an adequate and transparent organisational structure with a clear allocation and 
appropriate segregation of responsibilities; 

an  effective  system  for  ensuring  the  transmission  of  information  and 
management of conflicts of interest.  

That  system  of  governance  shall  ensure  that  environmental,  social  and  governance 
factors related to investment assets are considered in investment decisions and shall 
be subject to regular internal reviews. 

Such internal reviews shall assess the adequacy of the composition, effectiveness and 
internal  governance  of  the  administrative,  management  or  supervisory  body,  taking 
into account the nature, scale and complexity of the risks inherent in the activities of 
the IORP.’; 

(b)  paragraphs 3 and 4 are replaced by the following: 

‘3.  Member States shall ensure that IORPs establish and apply written policies in 
relation to risk management, internal control, internal audit, remuneration and, where 
relevant, actuarial and outsourced activities, and that those policies are implemented. 
Those  written  policies  shall  be  subject  to  prior  approval  by  the  management  or 
supervisory  body  of  the  IORP  and  shall  be  reviewed  at  least  every  three  years  and 
adapted in view of any significant change in the system or area concerned. 

4.  Member  States  shall  ensure  that  IORPs  have  in  place  an  effective  internal 
control system. That system shall have administrative and accounting procedures, an 
internal  control  framework,  and  appropriate  reporting  arrangements  at  all  levels  of 
the IORP and a compliance function.’; 

EN 

35 

  EN 

 
(c) 

the following paragraph 4a is inserted: 

‘4a. The compliance function shall include advising the administrative, management 
or  supervisory  body  on  compliance  with  the  laws,  regulations  and  administrative 
provisions adopted pursuant to this Directive. It shall also assess the possible impact 
of  any  changes  in  the  legal  environment  on  the  operations  of  the  IORP  concerned 
and shall identify and assess compliance risk.’ 

(d) 

(e) 

in paragraph 6, the second and third sentences are deleted; 

the following paragraphs 7 to 10 are added: 

‘7.  Where  there  is  potential  or  actual  conflict  of  interest  arising  from  the 
relationship  between the  IORP and  a service provider of the  IORP, Member States 
shall  require  that  the  persons  who  effectively  run  the  IORP  take  independent 
decisions in the sole interest of members and beneficiaries. 

8.  Member  States  shall  require  IORPs  and,  where  applicable,  their  respective 
nomination  committees  to  engage  a  broad  set  of  qualities  and  competencies  when 
selecting  members  to  the  management  or  supervisory  body,  ensuring  a  balanced 
representation of women and men.  

Member  States  shall  require  that  IORPs  and,  where  applicable,  their  respective 
nomination committees, put in place a policy that promotes diversity and inclusion in 
the  management  or  supervisory  body.  That  policy  shall,  where  relevant,  take  into 
account 
includes 
representatives of social partners, and be applied in a manner that is proportionate to 
the nature, scale and complexity of the activities of IORPs. 

the  administrative,  management  or  supervisory  body 

that 

Member  States  shall  also  require  that  the  policy  sets  individual  quantitative 
objectives related to gender-balance in  a manner that is proportionate to the nature, 
scale  and  complexity  of  the  activities  of  the  IORPs.  The  target  shall  consider  the 
members of the management or supervisory body that are selected by the sponsor of 
the  IORP  and  shall  not  apply  to  IORPs  where  the  number  of  members  of  the 
management  or  supervisory  body  that  are  selected  by  the  sponsor  of  the  IORPs  is 
three or fewer. 

9.  Member  States  shall  require  IORPs  to  publicly  disclose  the  target  for  the 
gender-balanced representation of the underrepresented gender in the management or 
supervisory body, the policy on how to increase the number of the underrepresented 
gender in the management or supervisory body and its implementation in the annual 
reports. 

10.  Member  States  shall  ensure  that  the  competent  authorities  have  appropriate 
means, methods and powers for verifying the system of governance of the IORPs and 
for  evaluating  emerging  risks  identified  by  those  IORPs  which  may  affect  their 
financial soundness. 

Member  States  shall  ensure  that  their  competent  authorities  have  the  powers 
necessary to require that the system of governance be improved and strengthened to 
ensure compliance with the requirements set out in Articles 20 to 32.’; 

(24) 

Article 22 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Member States shall require IORPs to ensure that persons who effectively run 
the IORP, the administrative, management or supervisory bodies, persons who carry 

EN 

36 

  EN 

 
out key functions and, where applicable, persons or entities to which a key function 
has been outsourced in accordance with Article 31 fulfil the following requirements 
when carrying out their tasks: 

(a)  

the requirement to be fit: 

(i)  

for persons who effectively run the IORP, this means their qualifications, 
knowledge and experience are adequate to enable them to ensure a sound 
and  prudent  management  of  the  IORP,  which  shall  include  the 
knowledge  and  competencies  enabling  them  to  address  the  different 
levels  of risk that members and beneficiaries are exposed to,  depending 
on the nature of the schemes they are part of; 

(ii)   for persons who carry out the actuarial or internal audit key functions this 
means  their  professional  qualifications,  knowledge  and  experience  are 
adequate to properly carry out their key functions; 

(iii)   for  persons  who  carry  out  other  key  functions  this  means  their 
qualifications, knowledge and experience are adequate to properly carry 
out their key functions;  

(iv)   for  the  administrative,  management  or  supervisory  bodies,  this  means 
that  the  qualifications,  knowledge  and  experience  of  their  members  are 
collectively adequate to enable them to perform their duties;  

(b)  

the requirement to be proper: they are of good repute and integrity.’; 

(b) 

the following paragraphs 1a and 1b are inserted: 

‘1a.  Member  States  shall  require  that  IORPs  notify  their  competent  authorities  of 
any changes to the identity of the persons referred to in paragraph 1, along with the 
reasons for the changes and all information needed to assess whether the new persons 
appointed are fit and proper. 

1b.  Member  States  shall  require  that  IORPs  notify  their  competent  authorities 
where any of the persons referred to in paragraph 1 no longer fulfil the requirements 
laid down in that paragraph or have been replaced for that reason.’; 

(c)  paragraph 2 is replaced by the following:  

‘2.  Member  States  shall  ensure  that  the  competent  authorities  are  able  to  assess 
whether  the  persons  referred  to  in  paragraph  1  the  requirements  laid  down  in 
paragraph  1  on  an  ongoing  basis,  and  whether  there  are  any  actual  or  potential 
conflicts of interest and how these are prevented or managed.’; 

(d) 

the following paragraph 2a is inserted: 

‘2a.  Where a person who effectively runs the IORP or has other key functions does 
not  fulfil  the  requirements  set  out  in  paragraph  1,  the  competent  authorities  shall 
have the power to require the IORP to remove such person from that position.’; 

(25) 

in Article 23(3), the following points (h) and (i) are added: 

‘(h)   the  remuneration  policy  shall  specify  how  the  IORP  takes  into  account  the 
integration  of  sustainability  risks,  as  defined  in  Article  2,  point (22),  of 
Regulation (EU) 2019/2088 of the European Parliament and of the Council, in 
the risk management system; 

EN 

37 

  EN 

 
(i) 

remuneration policies and practices shall be objective and non-discriminatory, 
and shall be based on the principle of equal pay for male and female employees 
for equal work or work of equal value for women and men.’; 

(26) 

in Article 25(2), the introductory wording is replaced by the following: 

‘The  risk-management  system  shall  cover,  in  a  manner  that  is  proportionate  to  the 
nature, scale and complexity of the IORPs’ activities, risks which can occur in IORPs 
or in undertakings to which tasks or activities of an IORP have been outsourced, at 
least in the following areas, where applicable:’; 

(27) 

Article 26 is replaced by the following: 

‘Article 26 
Internal audit function 

1.  Member  States  shall  require  IORPs  in  a  manner  that  is  proportionate  to  the 
nature,  scale  and  complexity  of  their  activities  to  provide  for  an  effective  internal 
audit function.  

The  internal  audit  function  shall  include  an  evaluation  of  the  adequacy  and 
effectiveness  of  the  internal  control  system  and  other  elements  of  the  system  of 
governance, including, where applicable, outsourced activities. 

2. 
Any  findings  and  recommendations  of  the  internal  audit  shall  be  reported  to 
the  administrative,  management  or  supervisory  body  which  shall  determine  what 
actions  are  to  be  taken  with  respect  to  each  of  the  internal  audit  findings  and 
recommendations and shall ensure that those actions are carried out.’; 

(28) 

Article 28 is amended as follows: 

(a) 

in paragraph 1, the following subparagraph is added:  

‘Member  States  shall  ensure  that  IORPs  establish  a  written  policy  for  own-risk 
assessment containing the processes and procedures for carrying out the assessment, 
the frequency of the assessment and the methods.’; 

(b)  paragraph 2 is amended as follows: 

(i) 

the introductory wording is replaced by the following: 

‘Member  States  shall  ensure  that  the  risk  assessment  referred  to  in  paragraph  1, 
having regard to the nature, scale and complexity of the IORP’s activities, includes 
the following:’; 

(ii) 

the following points (i), (j) and (k) are added: 

‘(i)   an assessment of how the risks to which the IORP is or could be exposed 
compare  to  the  risk  tolerance  limits  approved  by  the  administrative, 
management or supervisory body of the IORP; 

(j) 

(k) 

the assessment referred to in Article 44b(2); 

an assessment of the economies of scale and efficiency options, including 
the  participation  in  pooled  investment  structures,  shared  services  or 
transfers, and of their impact on members and beneficiaries.’; 

(iii) 

the following subparagraph is added: 

EN 

38 

  EN 

 
‘For  the  purposes  of  the  first  subparagraph,  point  (i),  Member  States  shall  require 
that where, in accordance with the conditions of the pension scheme, members and 
beneficiaries  bear  risks,  the  risks  and  risk  tolerance  limits  from  the  perspective  of 
members and beneficiaries shall be considered, taking into account their capacity to 
bear risk and their risk appetite.’; 

(29) 

in Article 30, the following paragraphs are added: 

‘Member States shall require that the statement identifies clear investment objectives 
for each pension scheme that are consistent with its retirement income objective, the 
overall  performance  objectives  for  the  scheme  and  the  means  of  monitoring 
performance.  The  statement  shall  also  identify  when  deviations  from  the  asset 
allocation strategy and performance objectives may be tolerated and to what extent. 
The investment policy shall also include any overarching decisions regarding tactical 
asset allocation, security selection and trade execution. 

The  statement  shall  also  address  whether,  why,  to  what  extent  and  how  more 
complex classes of assets, including alternative asset classes, will be used, and shall 
specify the appropriate extent of exposure to counterparty risk. 

Member  States  shall  ensure  that  the  IORP  establishes  procedures  and  criteria  for 
reviewing  the  effectiveness  of  the  investment  policy  and  for  determining  whether 
amendments  are  required  to  the  policy,  its  implementation  procedures  or  the 
decision-making structure. 

The  statement  shall  be  adopted  by  the  administrative,  management  or  supervisory 
body  of  the  IORP.  Where  an  IORP  manages  different  pension  schemes,  separate 
statements of investment policy shall be prepared for each. 

Member States shall ensure that, for pension schemes in which members are entitled 
to  make  investment  choices,  the  statement  provides  for  an  appropriate  range  of 
investment options, including a default option, classifies those options according to 
the  nature  and  extent  of  the  investment  risk  borne  by  members,  and  ensures  that 
sufficient information is made available to enable informed investment decisions.’; 

(30) 

Article 31 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Member  States  shall  permit  or  require  IORPs  authorised  in  their  territory  to 
entrust any activities including key functions and the management of those IORPs, in 
whole or in part, to service providers operating on behalf of those IORPs, provided 
that the outsourcing arrangements comply with paragraphs 2 to 7.’; 

(b)  paragraph 5 is replaced by the following: 

‘5.  Member  States  shall  ensure  that  IORPs  outsourcing  key  functions,  the 
management of those IORPs, or other activities covered by this Directive enter into a 
legally  enforceable  written  agreement  with  the  service  provider.  Such  agreement 
shall  include  a  breakdown  of  direct  and  indirect  costs  and  shall  clearly  define  the 
rights  and  obligations  of  the  IORP  and  the  service  provider.  In  case  of  a  potential 
conflict of interest with  the service provider, IORPs shall document and implement 
procedures to prevent or manage conflicts of interest.’; 

(c)  paragraph 7 is deleted; 

(31) 

Article 33 is amended as follows: 

EN 

39 

  EN 

 
(a)  paragraphs 1, 2 and 3 are replaced by the following: 

In  the  case  of  a  pension  scheme  where  members  and  beneficiaries  fully  bear 
‘1. 
the investment risk, the competent authority of the home Member State shall require 
the IORP to appoint one depositary per pension scheme for the safe-keeping of assets 
and  oversight  duties  in  accordance  with  Articles  34  and  35  or,  if  the  IORP  itself 
keeps the assets in accordance with Article 34(2), require the IORP to have a trustee 
who performs the oversight duties in accordance with Article 35 and is notified to the 
competent authority. 

For  the  purposes  of  the  first  subparagraph,  the  IORP  or,  where  applicable,  the 
authorised  entity  referred  to  in  Article  2(1),  shall  not  act  as  depositary  for  that 
scheme. 

For pension schemes in which the members and beneficiaries do not fully bear 
2. 
the  investment  risk,  the  home  Member  State  may  require  the  IORP  to  appoint  one 
depositary  per  pension  scheme  for  safe-keeping  of  assets  or  for  safe-keeping  of 
assets and oversight duties in accordance with Articles 34 and 35. 

Unless  otherwise  provided  for  in  this  Chapter,  for  the  appointment  of  the 

3. 
depositary, Chapter IV of Directive 2009/65/EC shall apply accordingly. 

Member  States  shall  not  restrict  IORPs  from  appointing  depositaries  established  in 
another Member State.’; 

(32) 

Article 34 is replaced by the following: 

‘Article 34 
Safekeeping of assets and depositary liability 

Unless otherwise provided for in this Chapter, for the execution of the tasks of 
1. 
the depositaries in relation to the safe-keeping of assets and the depositary liability, 
Chapter IV of Directive 2009/65/EC shall apply accordingly. 

2.  Where no depositary is appointed for the safe-keeping of assets, IORPs shall, 
at least be required to: 

(a)   ensure that financial instruments are subject to due care and protection; 

(b)   keep records that enable the IORP to identify all assets at all times and without 

delay; 

(c)  

(d)  

take the necessary measures to avoid conflicts of interest in relation to the safe-
keeping of assets; 

inform  the  competent  authorities,  upon  request,  about  the  manner  in  which 
assets are kept.’; 

(33) 

in Article 35, paragraph 1 is replaced by the following:  

‘1.  Unless  otherwise  provided  for  in  this  Chapter,  for  the  oversight  duties  of  the 
depositary, Chapter IV of Directive 2009/65/EC shall apply accordingly.’; 

(34) 

the heading of Title IV is replaced by the following: 

EN 

40 

  EN 

 
‘TITLE IV 
INFORMATION TO BE GIVEN TO PROSPECTIVE MEMBERS, 
MEMBERS AND BENEFICIARIES AND BUSINESS CONDUCT 
RULES’; 

(35) 

Article 36 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Taking  into  account  the  nature  of  the  pension  scheme  established,  Member 
States  shall  ensure  that  every  IORP  authorised  in  their  territory  operating 
occupational pension schemes provides to: 

(a)   prospective members: at least the information set out in Article 41; 

(b)   members: at least the information set out in Article 37 to 40, 41a, 42 and 44; 

and 

(c)   beneficiaries: at least the information set out in Article 37, 41a, 43 and 44. 

Where,  pursuant  to  national  law, IORPs are authorised to  provide personal  pension 
products,  Member  States  shall  ensure  that  every  IORP  authorised  in  their  territory, 
which  provides  those  products  other  than  the  pan-European  Personal  Pension 
Product as defined in Article 2, point (1), of Regulation (EU) 2019/1238, provides to 
prospective savers and personal pension savers and beneficiaries information that is 
clear,  fair,  not  misleading,  and  appropriate  to  the  nature  of  the  product,  the 
distribution  channel  and  the  characteristics  of  the  saver  or  beneficiary.  That 
information  shall  ensure  a  level  of  transparency  and  protection  equivalent  to  that 
required under national law for the distribution of personal pension products by other 
entities or institutions, at least in respect of the following elements: 

(a)  

the identity, legal form and authorisation status of the IORP; 

(b)  

the  main  characteristics,  costs  and  risks  of  the  personal  pension  product 
offered; 

(c)  

the existence and nature of any advice or recommendation provided; 

(d)  

the nature of any remuneration received in relation to the product;  

(e)  

the procedures for complaints and redress. 

Member  States  may  adapt  those  requirements  to  reflect  the  specific  features  of 
IORPs and the diversity of personal pension distribution channels.’; 

(b) 

the following paragraph 4 is added: 

‘4.  EIOPA  shall  issue  guidelines,  in  accordance  with  Article  16  of  Regulation 
(EU)  No  1094/2010,  on  the  information  that  is  to  be  provided  in  accordance  with 
Articles 41, 42 and 43.’; 

(36) 

in Article 37(1), point (g) is replaced by the following: 

‘(g)   where  members  bear  investment  risk  or  can  take  investment  decisions, 
information  on  the  past  performance  of  investments  related  to  the  pension 
scheme  for  a  minimum  of  ten  years,  or  for  all  the  years  that  the  scheme  has 
been operating where this is less than ten years;’; 

(37) 

the following Article 37a is inserted: 

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‘Article 37a 
Pension tracking systems 

1.  Member States shall ensure that, where pension tracking systems are in place, 
they cover the pension entitlements administered by IORPs. 

For  the  purposes  of  paragraph  1,  Member  States  shall  ensure  that  IORPs 
2. 
transmit to pension tracking systems, where such systems have been established, all 
information necessary to provide members and beneficiaries with a comprehensive, 
reliable  and  up-to-date  overview  of  their  occupational  and  personal  pension 
entitlements, insofar as those entitlements are administered by the IORP. 

3.  Member States  shall ensure that  the information  referred to  in  paragraph  2 is 
transmitted  in  a  standardised,  machine-readable  and  interoperable  format  enabling 
pension  tracking  systems  to  aggregate  data  on  accrued  rights,  accumulated  capital 
and projected benefits in a coherent and comparable manner. 

4.  Member  States  shall  ensure  that  IORPs  remain  fully  responsible  for  the 
completeness  and  accuracy  of  the  data  transmitted  and  for  the  fulfilment  of  all 
communication obligations provided for in this Article. 

5.  Member  States  shall  ensure  that  competent  authorities  monitor  and  enforce 
compliance  with  this  Article  and  take  corrective  measures  where  IORPs  fail  to 
provide complete, accurate or timely information. 

6. 
The  format  and  structure  of  the  information  to  be  transmitted  to  pension 
tracking  systems  shall  be  consistent  with  the  format  and  structure  laid  down  in  the 
Delegated Regulation adopted pursuant to Article 38.’; 

(38) 

Article 38 is amended as follows:  

(a)  paragraphs 1, 2 and 3 are replaced by the following: 

‘1.  Member States shall require IORPs to draw up a concise document containing 
key  information  for  each  member.  That  document  shall  provide  information  on  the 
level of risk borne by the member and take into consideration the specific nature of 
national  pension  systems  and  of  relevant  national  social,  labour  and  tax  law 
(‘Pension  Benefit  Statement’).  The  title  of  the  document  shall  contain  the  words 
‘Pension Benefit Statement’. 

The  exact  date  and  period  to  which  the  information  in  the  Pension  Benefit 

2. 
Statement refers to shall be stated prominently. 

3.  Members  States  shall  require  that  the  information  contained  in  the  Pension 
Benefit  Statement  is  accurate,  up  to  date,  consistent  with  the  choices  made  and 
complete. To facilitate understanding, the information presented shall be layered and 
follow  principles  of  good  design.  The  Pension  Benefit  Statement  shall  be  made 
available  to  each  member  free  of  charge  on  paper  or  through  electronic  means, 
including  on  a  durable  medium  or  by  means  of  a  website,  at  least  annually,  in 
accordance with the member’s preference. Preference shall be obtained at least at the 
beginning of membership.’; 

(b) 

 the following paragraph 6 is added: 

‘6.  The format and structure of the Pension Benefit Statement shall be provided to 
members and beneficiaries using a Union standardised format, while also taking into 
account the characteristics of different types of pension schemes. 

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EIOPA  shall,  after  conducting  consumer  testing  and  industry  testing,  develop  draft 
regulatory  technical  standards  specifying  the  details  of  the  presentation  of  the 
information  referred  to  in  Articles  38  to  40.  In  relation  to  the  presentation  of  the 
information  on  past  performance  as  referred  to  in  Article  39(1),  point  (i),  EIOPA 
shall take into account the characteristics of different types of schemes when drafting 
those regulatory technical standards, in particular if members and beneficiaries bear 
investment  risk  or  where  the  investment  strategy  is  age-dependent  or  includes 
duration matching.  

In  order  to  minimise  duplication  of  reporting  requirements,  when  developing  the 
draft  regulatory  standards,  EIOPA  shall,  to  the  maximum  extent  possible,  ensure 
alignment  with  Commission  Delegated  Regulation  (EU)  2021/473*,  and  aim  at 
facilitating  the  insert  of  the  information  of  the  Pension  Benefit  Statement  into 
pension tracking systems and at ensuring usability for members and beneficiaries.  

EIOPA shall submit those draft regulatory technical standards to the Commission by 
[PO = please insert date 18 months after the date of entry into force]. 

Power is delegated to the Commission to supplement this Directive by adopting the 
regulatory  technical  standards  referred  to  in  the  third  subparagraph  in  accordance 
with Article 10 of Regulation (EU) No 1094/2010. 

_____________________________________________ 

* 
Commission  Delegated  Regulation  (EU)  2021/473  of  18  December  2020  supplementing 
Regulation (EU) 2019/1238 of the European Parliament and of the Council with regard to regulatory 
technical  standards  specifying  the  requirements  on  information  documents,  on  the  costs  and  fees 
included  in  the  cost  cap  and  on  risk-mitigation  techniques  for  the  pan-European  Personal  Pension 
Product (OJ L 99, 22.3.2021, p. 1, ELI: http://data.europa.eu/eli/reg_del/2021/473/oj).’; 

(39) 

in Article 39, paragraph 1 is amended as follows: 

(a) 

the following point (ba) is inserted: 

‘(ba)  the  Member  State  in  which  the  IORP  is  authorised  and  the  names  of  the 

competent authorities of that Member State’; 

(b)  point (d) is replaced by the following: 

‘(d)   information  on  pension  benefit  projections  based  on  the  retirement  age  as 
specified in point (a), and a disclaimer that those projections may differ from 
the  final  value  of  the  benefits  received,  including,  where  applicable,  that  the 
retirement benefit may be variable;’; 

(c)  point (g) is replaced by the following: 

‘(g)   where  members  bear  investment  risk  or  can  take  investment  decisions, 

information on the costs imposed and their impact, including: 

(i)  

a  breakdown  of  all  costs  incurred,  directly  and  indirectly,  by  members 
and beneficiaries over the previous 12 months and on compounded basis 
since  the  member  joined  the  scheme  concerned,  indicating  at  least  the 
costs  of  administration,  the  costs  of  safekeeping  the  assets,  and  the 
investment  costs  incurred  in  connection  with  the  management  of  assets 
and portfolio transactions; 

(ii)   an  estimation  of  the 

impact  of 

the  costs  on 

the  final  capital 

accumulated;’; 

(d) 

the following points (i) and (j) are added: 

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‘(i)   where members bear investment  risk,  information  on the  past  performance  of 
the  pension  scheme  or,  where  applicable,  the  investment  selection  made, 
covering performance of a minimum of 10 years or, in cases where the scheme 
or  the  relevant  investment  option  have  been  provided  for  less  than  10  years, 
covering all the years for which the pension scheme or the relevant investment 
option have been provided;’; 

(j)   where members bear investment risk and are able to select between investment 
options,  a  brief  indication  of  the  investment  selection  made,  including  the 
number of options selected, the proportion of assets invested in each option and 
an indication of the risk level of the selection made in summary form.’; 

(e) 

the following subparagraphs are added: 

‘For  the  purposes  of  point  (d),  where  the  pension  benefit  projections  are  based  on 
economic scenarios, that information shall include at least a best estimate scenario, a 
favourable  scenario  and  an  unfavourable  scenario.  The  estimated  future  value  of 
retirement  benefits  shall  be  shown  in  real  terms  together  with  a  short  narrative 
explanation. 

For the purposes of point (g)(ii), the costs shall be shown at least in monetary terms 
and  as  a  percentage  of  contributions  over  the  previous  12  months  and  since  the 
member joined the scheme, respectively. 

For the purposes of point (i), information on past performance shall be accompanied 
by the statement ‘past performance is not indicative of future performance’.’; 

(40) 

in Article 40(1), point (c) is replaced by the following: 

‘(c) 

information about the assumptions used for the pension benefit projections, and 
where  applicable,  information  about  the  assumptions  used  for  amounts 
expressed in annuities, in particular with respect to the annuity rate, the type of 
provider and the duration of the annuity;’ 

(41) 

Article 41 is amended as follows: 

(a) 

in paragraph 1, point (a) is replaced by the following: 

‘(a)  any relevant options available to them including investment options, and their 

risks;’; 

(b)  paragraph 2 is replaced by the following: 

Prospective  members  as  referred  to  in  paragraphs  1  and  3  shall  be  provided 

‘2. 
with the following: 

(a)  

(b)  

(c) 

(c) 

information  on  the  past  performance  of  investments  related  to  the  pension 
scheme  for  a  minimum  of  ten  years,  or  for  all  the  years  that  the  scheme  has 
been operating where that is less than ten years; 

information on all direct and indirect costs that members and beneficiaries have 
borne  over  the  previous  12  months,  including  the  costs  of  each  investment 
option separately, presented at least in monetary terms, and an estimation of the 
impact of the costs on the final capital accumulated;  

 information on the investment options available and their risks.’; 

in paragraph 3, point (a) is replaced by the following: 

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44 

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‘(a)   any relevant options available to them including investment options, and their 

risks and costs;’; 

(42) 

the following Article 41a is inserted: 

‘Article 41a 
Information to be given to members and beneficiaries in the case of underperformance 

1.  Member  States  shall  ensure  that  IORPs  regularly  monitor  their  performance 
against  benchmarks  established  by  their  competent  authority  in  accordance  with 
paragraph  4.  Member  States  shall  ensure  that,  where  an  IORP  identifies  that  its 
performance materially deviates from the applicable benchmark, it promptly informs 
its  competent  authority  and  provides  evidence  that  the  costs  and  charges  of  the 
scheme  are  justified  and  proportionate  and  that  the  scheme  is  in  line  with  the  risk 
tolerance of its members and beneficiaries. 

Where the competent authority concludes that the evidence that the costs and charges 
of the scheme are not justified and proportionate or that the scheme is not in line with 
the risk tolerance of  its members and beneficiaries,  or where the underperformance 
persists for at least three years, Member States shall ensure that the IORP promptly 
informs  its  members  and  beneficiaries  of  that  situation  in  a  clear,  fair  and 
understandable manner. 

2.  Member  States  shall  ensure  that  the  information  referred  to  in  paragraph  1, 
second  subparagraph,  enables  members  and  beneficiaries  to  understand  how  the 
scheme is performing in relation to comparable  IORPs. Member States shall ensure 
that  the  information  provided  explains  in  a  simple  manner  the  reasons  for  the 
underperformance, how the costs and charges are proportionate and justified, and the 
actions being taken to improve results and to protect the value of members’ accrued 
rights.  Member  States  shall  ensure  that  the  information  remains  easily  accessible 
until the IORP demonstrates sustained improvement. 

3.  Member States shall require that IORPs ensure that the information referred to 
in  paragraph  1,  second  subparagraph,  is  made  available  through  the  same  channels 
normally  used  for  providing  the  Pension  Benefit  Statement  and  other  regular 
communications, and that members and beneficiaries are informed of how to obtain 
further details if they so wish. 

4.  Member  States  shall  ensure  that  clear,  objective  and  transparent  benchmarks 
are  developed  by  their  competent  authority  for  assessing  underperformance, 
including with respect to administrative, investment and transaction costs, gross and 
net investment returns and funding outcomes over specified periods. 

5. 
For the purposes of this Article, EIOPA shall adopt guidelines, in accordance 
with Article 16 of Regulation (EU) No 1094/2010, on methodologies for determining 
underperformance across Member States.’; 

(43) 

Article 42 is replaced by the following: 

‘Article 42 
Information to be given to members during the pre-retirement phase 

In addition to the Pension Benefit Statement, IORPs shall provide each member, in 
due time before the retirement age as specified in Article 39(1), point (a), or at the 
request  of  the  member,  with  information  about  the  upcoming  start  of  the  pay-out 

EN 

45 

  EN 

 
phase  and  the  benefit  pay-out  options  available  in  taking  their  retirement  benefits, 
including  the  costs  and  charges  associated  with  each  option  and  the  applicable  tax 
treatment.  

Member States shall ensure that the information referred to in the first subparagraph 
is accompanied by a concise explanatory  package that includes all of the following 
information: 

(a) 

(b) 

(c) 

the  main  features,  implications  and  potential  effects  of  each  benefit  pay-out 
option available on the member and, where applicable, on the beneficiaries; 

the risks and factors that could adversely affect the level, stability or duration 
of retirement income;  

the circumstances and criteria for members to take into account when assessing 
the  suitability  of  the  different  benefit  pay-out  options  for  their  individual 
situation. 

Member States shall ensure that where one of the benefit pay-out options offered by 
the IORP is a variable annuity, the IORP provides each member, in due time before 
the  retirement  age  as  specified  in  Article  39(1),  point  (a),  with  projections  to 
illustrate the potential variation in the amount of the pay-out over time.’; 

(44) 

Article 43 is amended as follows: 

(a)  paragraph 1 is replaced by the following: 

‘1.  Member  States  shall  require  IORPs  to  annually  provide  beneficiaries  with 
information  about  the  benefits  due,  the  corresponding  pay-out  options,  and  a 
breakdown of all costs incurred and information on the past performance as referred 
to in Article 39, points (g) and (i).  

The  information  shall  also  describe  the  main  factors  that  could  affect  the  level  or 
duration  of  retirement  income,  including  investment  and  life-expectancy  risks,  and 
shall indicate, where relevant, the right to change the pay-out option.’; 

(b)  paragraph 3 is replaced by the following: 

‘3.  Where beneficiaries continue to make contributions or to bear investment risk 
during the pay-out phase, Member States shall ensure that IORPs continue to provide 
the Pension Benefit Statement, which shall also contain the information referred to in 
paragraph 1.’; 

(45) 

in Title IV, the following chapter is added: 

‘CHAPTER 4 
Business conduct rules 

Article 44a 
Duty of care 

1.  Member  States  shall,  taking  into  account  the  nature  of  the  pension  scheme, 
ensure that every IORP authorised in their territory always acts honestly, fairly and 
professionally,  and  in  accordance  with  the  best  interests  of  their  members  and 
beneficiaries. Those interests shall include the objective of providing adequate, risk-
adjusted and cost-efficient returns over the long term, consistent with the long-term 
nature of pension obligations. 

EN 

46 

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2.  Member  States  shall  ensure  that  IORPs  put  in  place  safeguards,  including 
guidance to support prospective members, members and beneficiaries when they are 
deciding  on  the  options  available  to  them,  and  inform  them  about  the  potential 
consequences of their decisions. 

Article 44b 
Appropriate structure and implementation of the pension schemes 

1.  Without  prejudice  to  national  social  and  labour  law  on  the  organisation  of 
pension systems, including compulsory membership and the outcomes of collective 
bargaining agreements, Member States shall require that:  

(a)  

(b)  

IORPs  ensure  that  the  structure,  design  and  implementation  of  pension 
schemes are appropriate in view of the identified needs, characteristics and risk 
profile of  the  members and beneficiaries,  in  a manner that is  proportionate to 
the nature, scale and complexity of the scheme. 

IORPs regularly review and, where necessary, adapt  the structure, design and 
implementation  of  the  pension  scheme,  taking  into  account  any  material 
developments,  in  order  to  ensure  that  the  scheme  remains  appropriate  and 
consistent  with  the  needs,  characteristics  and  risk  profile  of  members  and 
beneficiaries,  in  a  manner  that  is  proportionate  to  the  nature,  scale  and 
complexity of the scheme. 

The  IORP  shall  document  the  assessment  of  whether  the  structure,  design  and 
implementation  of  pension  schemes  are  appropriate  as  referred  to  in  the  first 
subparagraph, point (a). 

2.  Member States shall ensure that, where members bear investment risk, IORPs 
assess  the  long-term  risk  from  the  perspective  of  members  and  beneficiaries, 
including: 

(a)  

(b)  

the  determination  of  the  risk  tolerance  of  members  and  beneficiaries  bearing 
risks; 

the introduction of the use of pension projections in the risk assessment from 
the perspective of members and beneficiaries; 

(c)   where  the  IORP  offers  multiple  investment  options,  the  periodical  review  of 
the suitability of the investment options for the members according to their risk 
tolerance, and  where there is  a default option, the  review  of the suitability  of 
that default option; 

(d)   where IORPs do not offer multiple investment options, the periodical review of 
the  investment  strategy  to  consider  the  long-term  risk  assessment  from  the 
perspective of the members and beneficiaries. 

Article 44c 
Complaints 

1.  Member  States  shall  require  that  IORPs  put  in  place  and  apply  effective 
procedures  and  arrangements  that  are  appropriate  for  the  settlement  of  complaints 
lodged  by  members  and  beneficiaries  concerning  their  rights  and  obligations  laid 
down in this Directive. 

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2. 
The procedures and arrangements referred to in paragraph 1 shall be available 
in  the  official  languages  of  the  Member  State  concerned,  or  in  another  language 
accepted by the competent authorities of that Member State, or agreed between the 
IORP and its members and beneficiaries. 

3.  Member  States  shall  require  that  IORPs  reply,  either  electronically  or  on 
another durable medium, to the complaints of members and beneficiaries. The reply 
shall address all points raised within maximum 40 working days. 

4.  Member States shall ensure that IORPs inform members and beneficiaries who 
lodge a complaint about at least one alternative dispute resolution (ADR) body which 
is competent to deal with disputes concerning the rights and obligations of members 
and beneficiaries laid down in this Directive. 

5.  Member States shall ensure that the information on the procedures referred to 
in  paragraph  1  is  available  free  of  charge  to  members  and  beneficiaries  in  a  clear, 
comprehensive and easily accessible manner through electronic means, including on 
a  durable  medium  or  by  means  of  a  website,  or  on  paper.  That  information  shall 
specify how further information on the ADR body concerned and on the conditions 
for using it can be accessed. 

6.  Member  States  shall  ensure  that  the  competent  authorities  set  up  procedures 
which allow members, beneficiaries and other interested parties, including consumer 
associations, to submit complaints to the competent authorities with regard to alleged 
infringements  of  this  Directive  by  IORPs.  Member  States  shall  ensure  that  in  all 
cases, complainants receive replies. 

7.  Member  States  shall  ensure  that  were  a  case  that  concerns  more  than  one 
Member State, the complainant may choose to lodge his or her complaint through the 
competent  authorities of his  or her Member State of residence, regardless of where 
the infringement occurred. 

Article 44d 
Out-of-court redress 

1.  Member  States  shall  establish  adequate,  independent,  impartial,  transparent 
and  effective  ADR  procedures  for  the  settlement  of  disputes  between  IORPs  and 
their members  and beneficiaries concerning the rights  and obligations  laid down in 
this  Directive.  Where  appropriate,  those  procedures  shall  be  applied  by  existing 
competent  bodies.  Member  States  shall  ensure  that  such  ADR  procedures  are 
applicable,  and  the  relevant  ADR  body’s  competence  shall  effectively  extend,  to 
IORPs against whom the procedures are initiated. 

2. 
The  bodies  referred  to  in  paragraph  1  shall  cooperate  effectively  for  the 
resolution  of  cross-border  disputes  concerning  rights  and  obligations  arising  under 
this Directive.’; 

(46) 

the heading of Title V is replaced by the following: 

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‘TITLE V 
SUPERVISION’ 

(47) 

in Title V, the heading of Chapter 1 is replaced by the following: 

‘CHAPTER 1 
General rules on supervision’ 

(48) 

Article 45 is replaced by the following: 

‘Article 45 
Powers, resources and main objective of supervision by competent authorities 

Member States shall ensure that their competent authorities possess all the necessary 
means and powers for the performance of their duties under this Directive, and have 
the  relevant  expertise,  capacity,  and  mandate  to  achieve  the  main  objective  of 
supervision,  namely  the  protection  of  the  rights  of  members  and  beneficiaries  and 
ensuring the stability and soundness of IORPs.’; 

(49) 

the following Article 45a is inserted: 

‘Article 45a 
Competent authorities 

1.  Member States shall designate the competent authorities empowered to ensure 
the  implementation  of  this  Directive.  They  shall  inform  the  Commission  thereof, 
indicating any division of those duties. 

2.  Where  there  is  more  than  one  competent  authority  in  its  territory,  a  Member 
State shall ensure that those authorities collaborate closely so that they can discharge 
their respective duties effectively. 

3. Member States shall ensure that competent authorities have a sufficient number of 
qualified staff and resources that are necessary for the effective performance of their 
duties.’; 

(50) 

Article 46 is amended as follows: 

(a) 

the title is replaced by the following: 

(b) 

the introductory wording is replaced by the following: 

‘Scope of supervision’; 

‘Member  States  shall  ensure  that  IORPs  are  subject  to  prudential  supervision, 
including the supervision of the following where applicable:’; 

(c) 

the following second paragraph is added: 

‘Member  States  shall  also  ensure  supervision  of  the  compliance  with  all  other 
provisions of this Directive.’; 

(51) 

Article 47 is amended as follows: 

(a) 

the title is replaced by the following: 

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49 

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‘General principles of supervision’ 

(b) 

in paragraph 2, the following sentence is added: 

‘It shall include the verification on a continuous basis of the proper operation of the 
IORPs’ activities and of the compliance with supervisory provisions by IORPs.’; 

(c)  paragraph 4 is replaced by the following: 

‘4. 
Supervisory powers shall cover the entire retirement provision business of the 
IORP,  including,  where  pursuant  to  national  law  IORPs  are  allowed  to  provide 
personal pension products, their personal pension provision business. Member States 
shall ensure that those powers are applied in a manner which is timely and which is 
proportionate to the nature, scale and complexity of the activities of the IORP.’; 

(d) 

the following paragraph 6 is added: 

‘6.  Member  States  shall  ensure  that  competent  authorities  monitor  market 
developments relating to the scale of IORPs.’; 

(52) 

Article 48 is amended as follows: 

(a) 

the following paragraphs 1a and 1b are inserted: 

‘1a.  Member States shall ensure that their competent authorities have the power to 
require all information necessary to  conduct supervision in accordance with Article 
50. 

1b.  Member States shall ensure that their competent authorities apply supervisory 
powers in a timely and proportionate manner.’; 

(b)  paragraph 2 is replaced by the following: 

‘2.  Member States shall ensure that their competent authorities have the power:  

(a) 

(b) 

to take preventive and corrective measures to ensure that IORPs comply with 
the  laws,  regulations  and  administrative  provisions  with  which  they  have  to 
comply in each Member State; 

to  take  any  necessary  measures,  including  where  appropriate,  those  of  an 
administrative  or  financial  nature,  with  regard  to  IORPs,  and  the  members  of 
their administrative, management or supervisory body.  

Without prejudice to the supervisory powers of competent authorities and the right of 
Member  States  to  provide  for  and  impose  criminal  sanctions,  Member  States  shall 
ensure  that  their  competent  authorities  may  impose  administrative  sanctions  and 
the  national  provisions 
other  measures  applicable 
implementing  this  Directive,  and  shall  take  all  measures  necessary  to  ensure  that 
those  sanctions  and  other  measures  are  implemented.  Member  States  shall  ensure 
that  their  administrative  sanctions  and  other  measures  are  effective,  proportionate 
and dissuasive.’; 

infringements  of 

to  all 

(53) 

Article 49 is amended as follows: 

(a)  paragraph 1 is amended as follows: 

(i) 

the first subparagraph is replaced by the following: 

‘Member  States  shall  ensure  that  competent  authorities  review  and  evaluate  the 
strategies,  processes  and  reporting  procedures  which  are  established  by  IORPs  to 
comply with the laws, regulations and administrative provisions adopted pursuant to 

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50 

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this Directive, taking into account the nature, scale and complexity of the activities of 
the IORP.’; 

(ii) 

the following subparagraph is added: 

‘The  assessments  referred  to  in  the  second  subparagraph,  points  (b)  and  (c),  shall 
take  into  account  the  risk  of  the  IORP  not  having  sufficient  financial  resources  to 
cover its current and future operating costs.’; 

(b) 

the following paragraphs 1a and 1b are inserted: 

‘1a.  Member States shall ensure that competent authorities in particular review and 
evaluate compliance with all elements referred to in Article 46. 

1b.  As  part  of  the  review  process,  the  competent  authority  and  each  IORP  shall 
conduct, at least every three years, a regular supervisory dialogue.’; 

(c)  paragraph 2 is replaced by the following: 

‘2.  Member  States  shall  ensure  that  IORPs  have  procedures  in  place  to  identify 
deteriorating  financial  conditions  and  immediately  notify  the  competent  authorities 
when such deterioration occurs.  

Member  States  shall  ensure  that  competent  authorities  have  in  place  appropriate 
monitoring  tools,  including  stress-tests,  that  enable  them  to  identify  deteriorating 
financial conditions in an IORP and to monitor how that deterioration is remedied.’; 

(d) 

the following paragraph 2a is inserted: 

‘2a.  The  competent  authorities  shall  assess  the  adequacy  of  the  methods  and 
practices  of  the  IORP  designed  to  identify  possible  events  or  future  changes  in 
economic conditions that could have adverse effects on the overall financial standing 
of the IORP concerned. 

The  supervisory  authorities  shall  assess  the  ability  of  the  IORP  to  withstand  those 
possible events or future changes in economic conditions.’; 

(e)  paragraph 4 is replaced by the following: 

‘4.  The  reviews,  evaluations  and  assessments  referred  to  in  paragraphs  1  and  1a 
shall be conducted regularly. 

The  competent  authorities  shall  establish  the  minimum  frequency  and  the  scope  of 
the  reviews,  evaluations  and  assessments  having  regard  to  the  nature,  scale  and 
complexity of the activities of the IORP concerned.’ 

(54) 

the following Articles 49a and 49b are inserted: 

‘Article 49a 
Regular supervisory dialogue 

1. 
The  regular supervisory dialogue  referred to  in  Article 49(1b) shall  cover the 
early identification of vulnerabilities, inefficiencies and structural challenges, and to 
long-term  adequacy,  efficiency  and 
encourage  strategic 
sustainability  of  the  IORP,  including  the  adequacy  of  its  scale,  its  capacity  for 
consolidation,  cooperation  or  asset  pooling,  and  the  appropriateness  of  its 
organisational configuration to operate efficiently and deliver value for members and 
beneficiaries. 

reflection  on 

the 

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2.  Member States shall ensure that the regular supervisory dialogue referred to in 
Article 49(1b) is based on a set of early warning parameters, including at least all of 
the following: 

(a)  

the  level  and  evolution  of  administrative,  transaction  and  investment  costs  of 
the IORP; 

(b)  

the net and risk-adjusted rate of return on assets of the IORP; 

(c)   any shortfall or deviation from promised or targeted benefit levels; 

(d)  

the number and evolution of active members and beneficiaries;  

(e)  

indicators  of  operational  efficiency,  risk  concentration  and  institutional 
resilience. 

3.  Member States shall ensure that, where the outcome of the regular supervisory 
dialogue  indicates  potential  weaknesses  or  deficiencies,  their  competent  authorities 
invite  the  IORP  concerned  to  consider  strategic  options  that  are  appropriate  at 
strengthen its long-term viability and the effective delivery of retirement benefits to 
members  and  beneficiaries,  including  measures  that  enhance  operational  scale, 
consolidation, cooperation, asset pooling or resource-sharing arrangements. 

4.  Member States shall ensure that the, where material deficiencies are identified, 
or  where  there  is  an  underperformance  as  referred  to  in  Article  41a(1),  their 
competent authority shall require the IORP to draw up a plan for remedial action that 
sets  out  the  measures,  timelines  and  governance  arrangements  to  address  the 
identified material deficiencies or that underperformance. Such a plan shall consider 
structural measures to improve efficiency and sound management, including, where 
appropriate,  possible  consolidation,  cooperation,  asset  pooling  or  resource-sharing 
arrangements.  

Member  States  shall  ensure  that  the  IORP’s  administrative,  management  or 
supervisory  body  adopts  the  plan  referred  to  in  the  first  subparagraph  and  submits 
that plan to the competent authority for review and approval. 

Member States shall ensure that the IORP reports periodically on the implementation 
of  the  plan  referred  to  in  the  first  subparagraph  and  on  any  progress  achieved  in 
implementing that plan when requested to do so by the competent authority. 

5.  Member States shall ensure that the competent authority: 

(a)   documents the outcome of each regular supervisory dialogue; 

(b)   may issue recommendations to the IORP concerned.  

The  recommendations  referred  to  in  point  (b)  of  the  first  subparagraph  shall  be 
without  prejudice  to  the  powers  of  the  competent  authority  to  adopt  binding 
supervisory measures. 

Article 49b 
Withdrawal of authorisation 

The  competent  authority  of  the  home  Member  State  may  withdraw  an 

1. 
authorisation granted to an IORP in the following cases: 

(a) 

the IORP concerned does not use its authorisation within 12 months, expressly 
renounces  that  authorisation  or  ceases  to  pursue  activities  for  more  than  six 

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consecutive  months,  unless  the  Member  State  concerned  has  made  provision 
for authorisation to lapse in such cases; 

the IORP concerned no longer fulfils the conditions for authorisation; 

the  IORP  concerned  fails  seriously  in  its  obligations  under  the  regulations  to 
which it is subject. 

(b) 

(c) 

2. 
In  the  event  of  the  withdrawal  or  lapse  of  authorisation,  the  competent 
authority  of  the  home  Member  State  shall  notify  the  competent  authorities  of  the 
other  Member  States  accordingly,  and  those  authorities  shall  take  appropriate 
measures  to  prevent  the  IORP  from  commencing  new  operations  within  their 
territories. 

The  competent  authority  of  the  home  Member  State  shall,  together  with  those 
authorities,  take  all  measures  necessary  to  safeguard  the  interests  of  members  and 
beneficiaries  and,  in  particular,  shall  restrict  the  free  disposal  of  the  assets  of  the 
IORP. 

3. 
Any decision to withdraw authorisation shall state the full reasons and shall be 
communicated  to  the  IORP  concerned.  Every  withdrawal  of  authorisation  shall  be 
notified to EIOPA.’; 

(55) 

Article 50 is amended as follows:  

(a) 

the following paragraphs are inserted after the title: 

‘Member  States  shall  require  IORPs  to  submit  to  the  competent  authorities  the 
quantitative  and  qualitative  information  which  is  necessary  for  the  purposes  of 
supervision,  taking  into  account  the  objectives  of  supervision  laid  down  in  Article 
45,  the  scope  of  supervision  laid  down  in  Article  46,  and  the  general  principles  of 
supervision laid down in Article 47, in particular the principle of proportionality.  

Member  States  shall  ensure  that  the  competent  authorities  have  the  following 
powers: 

(a)  

to determine the nature, the scope and the format of the information referred to 
in the first subparagraph, which they require  IORPs to submit on a regular or 
ad hoc basis; 

(b)  

to obtain any information regarding contracts which are entered into with third 
parties; and 

(c)  

to require information from external experts, such as auditors and actuaries.’; 

(b) 

the third subparagraph is amended as follows: 

(i) 

in point (d), the following point is added: 

‘(vii)  business plans referred to in Article 9;’; 

(ii) 

the following point (g) is added: 

‘(g)   require IORPs to submit regularly quantitative templates specifying in greater 
detail and supplementing the information contained in the reports referred to in 
points (c) and (d), including information requested in accordance with Article 
35 of Regulation (EU) No 1094/2010 necessary for the performance of duties 
entrusted to EIOPA under that Regulation and under this Directive’; 

(iii) 

the following paragraphs are added: 

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‘Member  States  shall  ensure  that  IORPs  report  on  annual  basis  to  the  competent 
authorities information on investment returns, net of investment costs, and all costs 
and charges incurred in connection with their activities. 

Member States shall ensure that competent authorities require IORPs to apply a look-
through  approach,  ensuring  that  all  costs  and  charges  incurred  at  the  level  of 
investment  funds,  asset  managers  and  transactions  are  included,  and  that  the  no-
netting principle is applied. 

In  order  to  ensure  uniform  conditions  of  application  of  this  Article,  EIOPA  shall 
develop  draft  implementing  technical  standards  on  the  procedures,  formats  and 
templates,  which  shall,  where  applicable,  distinguish  between  occupational  and 
personal pensions. 

Power is conferred to the Commission to adopt the implementing technical standards 
referred  to  in  the  fourth  subparagraph  in  accordance  with  Article  15  of  Regulation 
(EU) 1094/2010.’; 

(56) 

the following Article 50a is inserted: 

Article 50a 
Supervision of outsourced functions and activities 

1.  Member  States  shall  ensure  that  IORPs  which  outsource  a  function  or  an 
activity take the necessary steps to ensure that the following conditions are satisfied: 

(a)  

(b)  

the service provider cooperates with the supervisory authorities of the IORP to 
ensure supervision of the outsourced function or activity; 

the  IORP,  its  auditors  and  the  competent  authorities  have  effective  access  to 
data  related  to  the  outsourced  functions  or  activities,  including  the  power  to 
request information from IORPs and from service providers about outsourced 
key functions or any other activities at any time; 

(c)  

the competent authorities have effective access to the business premises of the 
service provider and must be able to exercise those rights of access. 

2. 
The  Member  State  where  the  service  provider  is  located  shall  permit  the 
competent  authorities  of  the  IORP  to  carry  out  themselves,  or  through  the 
intermediary  of  persons  they  appoint  for  that  purpose,  on-site  inspections  at  the 
premises of the service provider. The competent authorities of the IORP shall inform 
the  appropriate  authority  of  the  Member  State  of  the  service  provider  prior  to 
conducting  the  on-site  inspection.  In  the  case  of  a  non-supervised  entity  the 
appropriate authority shall be the competent authority. 

The competent authorities of the Member State of the IORP may delegate such on-
site inspections to the competent authorities of the Member State where the service 
provider is located. 

3.  Where  a  competent  authority  has  informed  the  appropriate  authority  of  the 
Member State of the service provider that it intends to carry out an on-site inspection 
in  accordance  with  this  paragraph,  or  where  it  carries  out  an  on-site  inspection  in 
accordance  with  the  first  subparagraph  where  that  competent  authority  is  unable  in 
practice  to  exercise  its  right  to  carry  out  that  on-site  inspection,  the  competent 
authority  may  refer  the  matter  to  EIOPA  and  request  its  assistance  in  accordance 

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54 

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with Article 19 of Regulation  (EU) No 1094/2010.  In that case, EIOPA may act in 
accordance with the powers conferred on it by that Article. 

In  accordance  with  Article  21  of  Regulation  (EU)  No  1094/2010,  EIOPA  shall  be 
entitled to participate in on-site examination where they are carried out jointly by two 
or more supervisory authorities.’; 

(57) 

Article 51 is amended as follows: 

(a)  paragraph 2 is amended as follows: 

(a)  points (a) and (b) are replaced by the following: 

‘(a)   the texts of laws, regulations,  administrative rules and general  guidance 
in  the  field  of  occupational  pension  schemes,  and,  where  applicable, 
personal  pension  products,  and  information  about  whether  the  Member 
State  chooses  to  apply  this  Directive  in  accordance  with  Articles  4  and 
5;’ 

(b)  

the general  criteria  and  methods  used in  the  supervisory review process 
as set out in Article 49, including, in particular, an overview of their risk 
assessment framework.’; 

(b)  point (d) is replaced by the following: 

‘(d) 

the main objective of supervision, information on the main functions and 
an annual report on the activities of their competent authorities;’; 

(c) 

the following subparagraphs are added: 

‘The disclosure provided for in the first subparagraph shall be sufficient to enable a 
comparison  of  the  supervisory  approaches  adopted  by  the  competent  authorities  of 
the different Member States. 

 The  information  referred  to  in  the  first  subparagraph,  points  (a)  to  (e),  shall  be 
accessible at a single electronic location in each Member State.’; 

(b) 

in paragraph 3, the following subparagraph is added: 

‘The  members  of  the  governing  and  managing  bodies  of  the  competent  authorities 
shall  have  the  qualifications,  experience  and  skills  required  to  perform  their  duties 
and exercise their powers and shall not be dismissed for reasons related to the proper 
performance of their duties or to  the proper exercise of their powers. They may be 
dismissed only if they no longer fulfil the conditions required for the performance of 
their  duties  or  if  they  have  been  found  guilty  of  serious  misconduct  under  national 
law. The conditions required for the performance of their duties, and what constitutes 
serious misconduct, shall be laid down in advance in national law.’; 

(c) 

the following paragraph 4 is added: 

‘4.  Member  States  shall  ensure  that  competent  authorities  publish,  on  a  single 
public  website,  clear,  comparable  and  easily  accessible  information  on  the  total 
annual costs, past performance and risk profile for all pension schemes operated by 
IORPs. 

For  each  pension  scheme  and,  where  applicable  investment  option,  the  published 
information shall include at least:  

(a)  

the classification of the scheme by risk profile; 

EN 

55 

  EN 

 
(b)  

total costs and charges reported to national competent authorities in accordance 
with  Article  50(7),  expressed  as  a  single  annual  percentage  of  total 
contributions of the previous twelve months; and 

(c)   past performance for completed financial years, including the most recent year. 

The information referred to in the second subparagraph, points (b) and (c), shall be 
provided  for  at  least  the  previous  10  years  or,  in  cases  where  the  scheme  has  been 
provided  for  less  than  10  years,  covering  all  years  for  which  the  scheme  has  been 
provided. 

Competent  authorities  shall  verify  the  accuracy  and  timeliness  of  the  information, 
and ensure its publication without delays once such verification has been completed. 

(58) 

the following Article 55a is inserted: 

‘Article 55a 
Collaboration platforms 

1. 
EIOPA  may,  in  the  case  of  justified  concerns  about  negative  effects  on 
members and beneficiaries, on its own initiative or at the request of one or more of 
the relevant competent authorities, set up and coordinate a collaboration platform to 
strengthen  the  exchange  of  information  and  to  enhance  collaboration  between  the 
relevant  competent  authorities  where  an  IORP  carries  out,  or  intends  to  carry  out, 
cross-border activities, where such activities are of relevance with respect to the host 
Member State’s market. 

Paragraph  1  shall  be  without  prejudice  to  the  right  of  the  relevant  competent 

2. 
authorities to set up a collaboration platform where they all agree to do so. 

The  setting  up  of  a  collaboration  platform  pursuant  to  paragraphs  1  and  2  is 
3. 
without  prejudice  to  the  supervisory  mandate  of  the  competent  authorities  of  the 
home Member State and host Member State provided for in this Directive. 

4.  Without  prejudice  to  Article  35  of  Regulation  (EU)  No  1094/2010,  at  the 
request  of  EIOPA,  the  relevant  competent  authorities  shall  provide  all  necessary 
information in a timely manner. 

5.  Where two or more competent authorities of a collaboration platform disagree 
about the procedure or content of an action to be taken, or inaction, EIOPA may, at 
the  request  of  any  relevant  competent  authority  or  on  its  own  initiative,  assist  the 
competent authorities in reaching an agreement in accordance with Article 19(1) of 
Regulation (EU) No 1094/2010. 

6. 
In  the  event  of  disagreement  within the  platform  and  where  there  are  serious 
concerns about negative effects on members and beneficiaries or about the content of 
an  action  or  inaction  to  be  taken  in  relation  to  an  IORP,  EIOPA  may  call  for  the 
competent authority of the home Member State to launch an on-site inspection of the 
IORP. The  competent  authority of the home Member State shall launch  the on-site 
inspection  without  delay  and  shall  invite  EIOPA  and  other  competent  authorities 
concerned to participate in it.’; 

(59) 

Article 59 is replaced by the following: 

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‘Article 59 
Publication of national rules 

1.  Member  States  shall  ensure  appropriate  publication  by  their  competent 
authorities  of  requirements  of  social  and  labour  law  relevant  to  the  field  of 
occupational  pension  schemes  under  which  a  pension  scheme  sponsored  by  an 
undertaking in the host Member State must be operated which shall apply to cross-
border activities of IORPs as referred to in Article 11(1).  

EIOPA shall include on its website the hyperlinks to the websites of competent 
2. 
authorities where information on such rules is published. Such information shall be 
up-to-date and EIOPA shall make the information available on its website, with all 
such rules categorised into different relevant areas of law. 

3.  Member  States  shall  establish  a  single  point  of  contact  responsible  for 
providing  information  on  the  requirements  of  social  and  labour  law  relevant  to  the 
field of occupational pension schemes under which the pension scheme sponsored by 
an  undertaking  in  the  host  Member  State  must  be  operated  which  shall  apply  to 
cross-border  activities  of  IORPs  in  their  respective  Member  State.  Such  a  point  of 
contact should be an appropriate competent authority. 

EIOPA shall examine in a report, and inform the Commission about the rules 
4. 
published by Member States as referred to in this Article in the context of the proper 
functioning of this Directive and of the internal market before [PO = please insert 6 
months after the application date of this directive].; 

(60) 

Articles 61 and 62 are replaced by the following: 

‘Article 61 
Processing of personal data 

With  regard  to  the  processing  of  personal  data  within  the  framework  of  this 
Directive, IORPs and competent authorities shall carry out their tasks in accordance 
with  Regulation  (EU)  2016/679.  With  regard  to  the  processing  of  personal  data  by 
EIOPA within the framework of this Directive, EIOPA shall comply with Regulation 
(EU) 2018/1725. 

Article 62 
Evaluation 

By [PO please insert date = four years after the date of application of this Directive], 
EIOPA  shall  submit  a  report  to  the  Commission,  the  European  Parliament  and  the 
Council on the implementation of this Directive, in particular regarding the following 
aspects: 

(a) 

(b) 

the extent to which this Directive contributes to the integration, efficiency and 
scale-up  of  occupational  retirement  provision  within  the  internal  market, 
including trends in consolidation and cooperation between IORPs; 

the experience acquired in applying this Directive, including its impact on the 
size,  cost-efficiency,  consolidation  and  professionalisation  of  IORPs,  and  its 
role in fostering trust, transparency and sound risk management in the interests 
of members and beneficiaries; 

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57 

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(c) 

the  optional  extension  of  the  scope  of  application  of  this  Directive  in 
accordance  with  Article  4,  and  its  effect  on  the  market  for  supplementary 
pensions.’;  

(61) 

the following Article 64a is inserted: 

‘Article 64a  
Exercise of delegation 

The power to adopt delegated acts is conferred on the Commission subject to 

1. 
the conditions laid down in this Article.  

2. 
The power to adopt delegated acts referred to in Articles 17(7) and 38(6) shall 
be  conferred  on  the  Commission  for  an  indeterminate  period  of  time  from  [PO  = 
please insert date of entry into force].  

3. 
The  delegation  of  powers  referred  to  in  Articles  17(7)  and  38(6)  may  be 
revoked  at  any  time  by  the  European  Parliament  or  by  the  Council.  A  decision  of 
revocation shall put an end to the delegation of the power specified in that decision. 
It  shall  take  effect  the  day  following  the  publication  of  the  decision  in  the  Official 
Journal of the European Union or at a later date specified therein. It shall not affect 
the validity of any delegated acts already in force.  

As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  notify  it 

4. 
simultaneously to the European Parliament and to the Council.  

A  delegated  act  adopted  pursuant  to  Articles  17(7)  and  38(6)  shall  enter  into 
5. 
force only if no objection has been expressed either by the European Parliament or 
the Council within a period of three months of notification of that act to the European 
Parliament  and  to  the  Council  or  if,  before  the  expiry  of  that  period,  the  European 
Parliament  and  the  Council  have  both  informed  the  Commission  that  they  will  not 
object.  That  period  shall  be  extended  by  three  months  at  the  initiative  of  the 
European Parliament or of the Council.’. 

Article 2 
Amendments to Directive (EU) 2016/97 

Directive (EU) 2016/97 is amended as follows: 

(1) 

in Article 2(1), the following points 19 and 20 are added: 

‘(19)  ‘personal  pension  product’  means  a  personal  pension  product  as  defined  in 
point 1 of Article 2 of Regulation (EU) 2019/1238 of the European Parliament 
and of the Council*.’ 

(20) ‘pension tracking system’ means a digital tool, typically a secure web portal or 
mobile  application,  that  provides  individuals  with  an  overview  of  their 
individual  accrued  pension  entitlements,  and  projections  of  future  benefits, 
across the pension schemes of which the individual is a member or beneficiary. 

__________ 

*  
Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 
2019  on  a  pan-European  Personal  Pension  Product  (PEPP)  (OJ  L  198,  25.7.2019,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2019/1238/oj).’; 

(2) 

Article 22 is amended as follows: 

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(a) 

(b) 

in paragraph 5, the word ‘mandatory’ is deleted; 

the following paragraph is added: 

‘6.  Member States shall ensure that, where the insurance distributor is responsible 
for  the  provision  of  occupational  pension  arrangements,  prospective  members, 
members  and  beneficiaries  of  such  arrangements  receive,  at  least,  the  information 
referred to in Articles 36 to 44 of Directive (EU) 2016/2341.’; 

(3) 

the following Article 22a is inserted: 

‘Article 22a 
Pension tracking systems 

1.  Member States shall ensure that, where pension tracking systems are in place, 
they  cover  the  pension  entitlements  administered  by  insurance  undertakings  and 
insurance intermediaries. 

2.  For  the  purposes  of  paragraph  1,  Member  States  shall  ensure  that  insurance 
undertakings  and  insurance  intermediaries  transmit  to  pension  tracking  systems, 
where  such  system  have  been  established,  all  information  necessary  to  provide 
customers with a comprehensive, reliable and up-to-date overview of their personal 
and occupational entitlements, insofar as those entitlements arise from  occupational 
pension  arrangements  or  personal  pension  products  provided  or  distributed  by 
insurance undertakings or insurance intermediaries. 

3.  Member States  shall ensure that  the information  referred to  in  paragraph  2 is 
transmitted  in  standardised  and  interoperable  format  enabling  pension  tracking 
systems  to  aggregate  data  on  accumulated  value,  accrued  rights  and  projected 
benefits in a coherent and comparable manner. 

4.  Member  States  shall  ensure  that  insurance  undertakings  and  insurance 
intermediaries remain fully responsible for the completeness and accuracy of the data 
transmitted  and  for  the  fulfilment  of  all  communication  obligations  provided  for  in 
this Article. 

5.  Member  States  shall  ensure  that  competent  authorities  monitor  and  enforce 
compliance  with  this  Article  and  take  corrective  measures  where  insurance 
undertakings or insurance intermediaries fail to provide complete, accurate or timely 
information. 

The  format  and  structure  of  the  information  to  be  transmitted  to  pension 

6. 
tracking systems shall be consistent with Article 29.’. 

Article 3 
Grandfathering 

IORPs which were registered or authorised under Directive (EU) 2016/2341  before 
[PO = please insert 1 day before application date of this Directive] are automatically 
recognised as IORPs authorised under national provisions transposing this Directive.  

Article 4 
Transposition 

1.  Member States  shall bring into force the laws, regulations and administrative 
provisions necessary to comply with this Directive by [PO = 2 years after entry into 

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force] at the latest. They shall forthwith communicate to the Commission the text of 
those provisions. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2.  Member  States  shall  communicate  to  the  Commission  the  text  of  the  main 
provisions of national law which they adopt in the field covered by this Directive. 

Article 5 
Entry into force 

This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 6 
Addressees 

This Directive is addressed to the Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 4 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 5 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 5 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 5 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 5 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 7 

Monitoring and reporting rules .................................................................................... 7 

Management and control system(s) ............................................................................. 7 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 7 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 7 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 7 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 7 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE .............. 8 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ......................................................................................................................... 8 

EN 

1 

  EN 

 
3.2. 

Estimated financial impact of the proposal on appropriations ..................................... 9 

3.2.1.  Summary of estimated impact on operational appropriations...................................... 9 

3.2.1.1.  Appropriations from voted budget ............................................................................... 9 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 13 

3.2.2.  Estimated output funded from operational appropriations......................................... 18 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 20 

3.2.3.1. Appropriations from voted budget .............................................................................. 20 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 20 

3.2.3.3.  Total appropriations ................................................................................................... 20 

3.2.4.  Estimated requirements of human resources.............................................................. 21 

3.2.4.1.  Financed from voted budget....................................................................................... 21 

3.2.4.2.  Financed from external assigned revenues ................................................................ 21 

3.2.4.3.  Total requirements of human resources ..................................................................... 22 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 23 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 23 

3.2.7.  Third-party contributions ........................................................................................... 23 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 24 

DIGITAL DIMENSIONS .......................................................................................... 25 

Requirements of digital relevance .............................................................................. 25 

Data ............................................................................................................................ 26 

Digital solutions ......................................................................................................... 27 

Interoperability assessment ........................................................................................ 29 

Measures to support digital implementation .............................................................. 29 

EN 

2 

  EN 

 
1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal  for  a  Directive  amending  Directive  (EU)  2016/2341  as  regards  the 
strengthening of the framework for occupational retirement provision, and amending 
Directive (EU) 2016/97aaa1.2. 

Policy area(s) concerned  

Capital Markets Union, Savings and Investments Union, Supplementary Pensions 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The primary objectives pursued by this legislative proposal amending Directive (EU) 
2016/2341  (IORP  II  Directive)  are  to  promote  stronger  and  more  sustainable 
retirement savings  outcomes for beneficiaries,  enhance transparency  regarding both 
costs  and  returns,  and  strengthen  risk  management  practices  across  supplementary 
pension schemes. In addition, the review aims to remove barriers that hinder efficient 
investment in the real economy and to facilitate the scaling up of pension providers, 
enabling  them  to  benefit  from  economies  of  scale,  improve  asset  allocation,  and 
deliver greater value to members and beneficiaries. In doing so, the reform seeks to 
raise standards across the supplementary pensions landscape, fostering greater value, 
increased resilience and enhanced long-term security for members. 

1.3.2. 

Specific objective(s) 

The specific objectives of the proposed amendments to Directive (EU) 2016/2341 are 
the following: 

- Streamlining investment rules to remove undue regulatory constraints that limit the 
ability  of  private  pension  providers  to  invest  efficiently,  even  where  members  and 
beneficiaries do not bear investment risks.  

-  Promoting  economies  of  scale,  which  determine  IORPs’  capacity  to  invest  in 
sophisticated, riskier and illiquid financial instrument. 

- Providing Member States with an option to extend the application of Directive (EU) 
2016/2341 to institutions otherwise excluded from its scope, where such institutions 
are not covered by any other Union prudential framework. 

-  Fostering  more  professional  and  efficient  management  of  retirement  savings  and 
strengthening supervision. While retirement savers are not in the position to monitor 
pension  providers’  activity  and  request  corrective  measures,  supervisors  can,  and 
their  mandate  should  encompass  stronger  supervision  of  the  system  of  governance 
and investment performance.  

1.3.3.  Expected result(s) and impact 

- More efficient management of retirement savings and supervision thereof 

-  Promotion  of  scale  and  prudent  access  to  higher  long  term  capital  market 
investment by improving the regulatory environment in which IORPs operate 

- Greater scale and cross-border efficiencies in the supplementary pensions sector 

EN 

3 

  EN 

 
-  Clearer  implementation  of  the  prudent  person  principle  which  can  nudge  IORPs 
towards  investment  policies  that  efficiently  and  effectively  combine  risk  mitigation 
with long-term return objectives.  

1.3.4. 

Indicators of performance 

Through  this  proposal,  the  Commission  aims  to  enable  –  and  will  monitor  –  the 
following:  

- Further consolidation and scaling-up of pension institutions 

- Higher long term investments in capital markets and the real economy 

- Lower costs and better performance on pension savings, as disclosed by competent 
authorities 

1.4. 

The proposal/initiative relates to:  

 a new action  

 

a 

new 

action 

following 

a 

pilot 

project 

/ 

preparatory 

action

EN 

4 

  EN 

 
1  

☑︎ the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

With this proposal, the Commission proposes  a Directive  amending Directive (EU) 
2016/2341.  Member  States  will  have  12  months  to  transpose  the  amendments 
introduced by this Directive from the entry into force. 

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

The  Directive  on  the  activities  and  supervision  of  institutions  for  occupational 
retirement provision  (IORPs) has been established at  EU level since 2016, because 
only  Union  action  can  set  a  common  regulatory  framework  for  IORP  providers.  In 
this  regard,  in  order  to  revise  rules,  including  in  relation  to  cross-border  activities, 
action at EU level through an amending Directive is required. 

1.5.3.  Lessons learned from similar experiences in the past 

Not applicable 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

Not applicable 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

The  proposal  further  clarifies  EIOPA’s  role  in  supervisory  coordination,  which 
already  forms  an  integral  part  of  its  mandate.  The  explicit  introduction  of  the 
possibility to establish collaboration platform does not alter EIOPA’s mandate and is 
not expected to affect its ability to deliver on its mandate within existing resources. 

1 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

EN 

5 

  EN 

 
 
1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

Comments  

Not applicable 

EN 

6 

  EN 

 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Not applicable 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

Not applicable 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

Not applicable 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between the 
control  costs  and  the  value  of  the  related  funds  managed),  and  assessment  of  the  expected 
levels of risk of error (at payment & at closure)  

Not applicable 

2.3.  Measures to prevent fraud and irregularities  

Not applicable 

EN 

7 

  EN 

 
3. 

ESTIMATED FINANCIAL  IMPACT OF THE PROPOSAL/INITIATIVE  3.1.
Heading(s)  of  the  multiannual  financial  framework  and  expenditure 

budget line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non-
diff.39 

from EFTA 
countries40 

from 
candidate 
countries and 
potential 
candidates41 

From other 
third 
countries 

other assigned 
revenue 

Diff./Non-
diff. 

Diff./Non-
diff. 

Diff./Non-
diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non-diff. from EFTA 
countries 

from 
candidate 
countries and 
potential 
candidates 

from other 
third 
countries 

other assigned 
revenue  

Diff./Non-
diff. 

Diff./Non-
diff. 

Diff./Non-
diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

39 
40 
41 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

8 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

Number 

EUR million (to three decimal places) 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes 
Budget line 

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Commitments 

Payments 

(1a) 

(2a) 

EN 

9 

0.000 

0.000 

EN 

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
Budget line 

Commitments 

Payments 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

operational 

appropriations  

Payments 

Commitments 

(4) 

(5) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2027 

TOTAL 
MFF 
2021-
2027 

0.000 

0.000 

0.000 

0.000 

TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

Heading of multiannual financial  
framework  

Number 

Operational appropriations  

DG: <…….> 

EN 

=4+6 

=5+6 

10 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
 
 
 
  
  
  
  
  
Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b +3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b +3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

operational 

appropriations  

Payments 

Commitments 

EN 

(4) 

(5) 

11 

Year 

2024 

Year 

2025 

Year 

2026 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2027 

TOTAL 
MFF 
2021-
2027 

0.000 

0.000 

0.000 

0.000 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

=4+6 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

•  TOTAL  operational 
operational headings) 

appropriations 

(all 

Commitments 

Payments 

•  TOTAL  appropriations  of  an  administrative  nature  financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

TOTAL appropriations Under Heading 1 to 
6 

Commitments 

of the multiannual financial framework 
(Reference amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’  

DG: <…….> 

 Human resources  
 Other administrative expenditure  
TOTAL DG <…….> 

Appropriations  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
DG: <…….> 

 Human resources  
 Other administrative expenditure  
TOTAL DG <…….> 

Appropriations  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING 7 of the multiannual financial 
framework  

(Total 
commitments = 
Total payments) 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

0.000 

0.000 

0.000 

0.000 

of the multiannual financial framework  

Payments 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EUR million (to three decimal places) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

3.2.1.2.  Appropriations from external assigned revenues 

Heading of multiannual financial framework  

Number 

DG: <…….> 

Operational appropriations  

Budget line 

EN 

Year 

2024 

Commitments 

Payments 

Year 

2025 

(1a) 

(2a) 

13 

EUR million (to three decimal places) 

Year 

2026 

Year 

2027 

TOTAL MFF 2021-2027 

  0.000 

  0.000 

EN 

 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
  
  
  
  
  
  
Budget line 

Commitments 

Payments 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

  0.000 

  0.000 

  0.000 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 0.000 0.000 

0.000 0.000 0.000 

DG: <…….> 

Operational appropriations  

Budget line 

Budget line 

Year 

2024 

Commitments 

Payments 

Commitments 

Payments 

Year 

2025 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

Year 

2026 

Year 

2027 

TOTAL MFF 2021-2027 

  0.000 

  0.000 

  0.000 

  0.000 

  0.000 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 0.000 0.000 

0.000 0.000 0.000 

TOTAL 

operational 

appropriations  

Payments 

Commitments 

EN 

(4) 

(5) 

14 

Year 

2024 

Year 

2025 

Year 

2026 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2027 

TOTAL 
MFF 
2021-
2027 

0.000 

0.000 

0.000 

0.000 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

=4+6 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Heading of multiannual financial framework  

Number 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Operational appropriations  
Budget line 

EN 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 2021-2027 

Commitments 

(1a) 

  0.000 

15 

EN 

 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
  
  
  
Budget line 

Payments 

Commitments 

Payments 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

  0.000 

  0.000 

  0.000 

  0.000 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 0.000 0.000 

0.000 0.000 0.000 

TOTAL 

operational 

appropriations  

Payments 

Commitments 

(4) 

(5) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
MFF 
2021-
2027 

0.000 

0.000 

0.000 

0.000 

TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

•  TOTAL  operational 
operational headings) 

appropriations 

(all 

Commitments 

Payments 

(4) 

(5) 

EN 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

=4+6 

=5+6 

16 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
 
 
 
 
 
 
 
 
 
•  TOTAL  appropriations  of  an  administrative  nature  financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

TOTAL appropriations under Headings 1 to 
6 

Commitments 

of the multiannual financial framework (Reference 
amount) 

Payments 

(6) 

=4+6 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’  

DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

EUR million (to three decimal places) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING 7 of 
the multiannual financial framework  

(Total commitments = Total payments) 

0.000 

0.000 

0.000 

0.000 

0.000 

EUR million (to three decimal places) 

EN 

17 

EN 

 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

TOTAL appropriations under HEADINGS 1 to 7  Commitments 

0.000 

0.000 

0.000 

0.000 

0.000 

of the multiannual financial framework  

Payments 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Commitment appropriations in EUR million (to three decimal places) 

Indicate objectives 
and outputs  

 

Type42 

Average 

o

cost  N

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

OUTPUTS 

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost  Total No  Total cost 

SPECIFIC OBJECTIVE No 143… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

42 
43 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

18 

EN 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Output 

Subtotal for specific objective No 2 

TOTALS 

EN 

19 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 2021 
- 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.3.2.  Appropriations from external assigned revenues 

EXTERNAL ASSIGNED REVENUES 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 2021 
- 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.3.3.  Total appropriations 

TOTAL 

Year 

Year 

Year 

Year 

VOTED APPROPRIATIONS              +                               
EXTERNAL ASSIGNED REVENUES 

2024 

2025 

2026 

2027 

TOTAL 2021 
- 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

20 

  EN 

 
  
  
Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature 
will  be  met  by  appropriations  from  the  DG  that  are  already  assigned  to  management  of  the  action 
and/or  have  been  redeployed  within  the  DG,  together,  if  necessary,  with  any  additional  allocation 
which may be granted to the managing DG under the annual allocation procedure and in the light of 
budgetary constraints. 

3.2.4.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs) 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.2.4.2.  Financed from external assigned revenues 

EXTERNAL ASSIGNED REVENUES 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

EN 

21 

  EN 

 
  
 
Other budget lines (specify) 

• External staff (in full time equivalent units) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support line  
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

3.2.4.3.  Total requirements of human resources 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL VOTED APPROPRIATIONS                         +                                               

Year 

Year 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Year 

Year 

EXTERNAL ASSIGNED REVENUES 

2024 

2025 

2026 

2027 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in full time equivalent units) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support line  
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

The staff required to implement the proposal (in FTEs):  

To be covered by 
current staff 
available in the 
Commission services  

Exceptional additional staff* 

To be financed 
under Heading 7 or 
Research 

To be financed from 
BA line 

To be financed 
from fees 

Establishment  plan 
posts 

N/A 

EN 

22 

  EN 

 
 
 
 
 
 
 
External  staff  (CA, 
SNEs, INT) 

Description of tasks to be carried out by: 

Officials and temporary staff 

External staff 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

TOTAL 
MFF 
2021 - 
2027 

HEADING 7 

IT expenditure (corporate)  

Subtotal HEADING 7 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

EN 

23 

  EN 

 
 
 
 
 
 
 
  
Appropriations in EUR million (to three decimal places) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-financed  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

Budget revenue line: 

Article …………. 

 

 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

Appropriations 
available for the 
current financial year 

  EUR million (to three decimal places) 

Impact of the proposal/initiative44 

Year 2024 

Year 2025  Year 2026 

Year 2027 

For assigned revenue, specify the budget expenditure line(s) affected. 

Not applicable 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or 
any other information). 

44 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20% for collection costs. 

EN 

24 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

List of requirements of digital relevance 

Requirement description 

Reference 
to the 
requireme
nt 

Article 11  Exchanges of information between 

home and host competent authorities 
should be made faster, allowing closer 
coordination including, where 
appropriate, through the involvement of 
the European Insurance and 
Occupational Pensions Authority 
(‘EIOPA’). Member States shall ensure 
that all procedures and formalities 
relating to cross-border activities and 
procedures can be easily completed 
through electronic means 

Where pension tracking systems are in 
place, Member States shall ensure that 
insurance undertakings and insurance 
intermediaries transmit to pension 
tracking systems, where such system 
have been established, all information 
necessary to provide customers with a 
comprehensive, reliable and up-to-date 
overview of their personal and 
occupational entitlements 

Member States shall ensure that IORPs 
transmit to pension tracking systems, 
where such system have been 
established, all information necessary to 
provide members and beneficiaries with 
a comprehensive, reliable and up-to-
date overview of their occupational and 
personal pension entitlements. IORPs 
remain fully responsible for the 
completeness and accuracy of the data 
transmitted and for the fulfilment of all 
communication obligations. The format 

Article 
22a 

Article 
37a 

High-level 
processes 

Category 

Actors 
affected or 
concerned 
by the 
requireme
nt 

NCAs, 
EIOPA 

Exchange 
of 
informatio
n 

Data; 
Process 
automati
on; 
Digital 
Solution; 

Digital 
public 
service 

Data; 
Digital 
Solution; 

Digital 
public 
service 

Data; 
Digital 
Solution; 

Digital 
public 
service 

Transmissi
on of 
informatio
n 

Member 
States; 
Insurance 
undertakin
gs and 
insurance 
intermedia
ries 

Member 
States, 
IORPs 

Transmissi
on of 
informatio
n 

EN 

25 

  EN 

 
 
Article 
55a 

and structure of the information to be 
transmitted to pension tracking systems 
shall, to the maximum extent possible, 
ensure alignment with Commission 
Delegated Regulation (EU) 2021/473 

EIOPA may, on its own initiative or at 
the request of one or more of the 
relevant competent authorities, set up 
and coordinate a collaboration platform 
to strengthen the exchange of 
information and to enhance 
collaboration between the relevant 
competent authorities where an IORP 
carries out, or intends to carry out, 
cross-border activities. The relevant 
competent authorities shall provide all 
necessary information in a timely 
manner 

NCAs, 
EIOPA 

Publish; 
Monitor; 
Manage 
registry 

Data, 
Digital 
Public 
Service 

4.2. 

Data 

High-level description of the data in scope and any related standards/specifications 

Type of data 

Information necessary to provide members 
and beneficiaries with a comprehensive, 
reliable and up-to-date overview of their 
occupational and personal pension 
entitlements 

Information related to cross-border 
activities and procedures; Collaborative 
platforms 

Reference to the 
requirement 

Standard and/or 
specification (if 
applicable) 

Article 22a; Article 
37a 

To be defined by the 
NCAs 

Article 11; Article 
55a 

To be defined by 
EIOPA 

Data flows 

Type of data 

Reference 
to the 
requirement 

Actor who 
provides the 
data 

Actor who 
receives the 
data 

Trigger 
for the 
data 
exchange 

Frequency 
(if 
applicable) 

EN 

26 

  EN 

 
 
 
 
 
Article 22a; 
Article 37a 

IORPs, 
Insurance 
undertakings 
and insurance 
intermediaries 

Pension 
tracking 
system 
provider 

// 

// 

Article 11; 
Article 55a 

NCAs 

NCAs, 
EIOPA 

// 

// 

Information 
necessary to 
provide members 
and beneficiaries 
with a 
comprehensive, 
reliable and up-to-
date overview of 
their occupational 
and personal 
pension 
entitlements 

Information related 
to cross-border 
activities and 
procedures; 
Collaborative 
platforms 

4.3. 

Digital solutions 

See section above  

Digital 
solution 

Reference(s) 
to the 
requirement(
s) 

Article 22a; 
Article 37a 

Updating 
of 
existing 
pension 
tracking 
systems 

Main mandated 
functionalities 

Responsi
ble body 

How is 
accessi
bility 
catered 
for? 

How is 
reusabilit
y 
consider
ed? 

Use of 
AI 
technol
ogies 
(if 
applica
ble) 

Pension 
tracking 
system 
provider, 
NCAs 

To be 
defined 
by 
NCAs 

No 

To be 
defined 
by NCAs 

IORPs, insurance 
undertakings and 
insurance 
intermediaries and 
distributors could 
transmit to pension 
tracking systems, 
where these exist, 
all information 
necessary to provide 
customers with a 
comprehensive, 
reliable and up-to-
date overview of 
their personal and 
occupational 
entitlements  

EN 

27 

  EN 

 
 
Article 11; 
Article 55 

Collabor
ative 
platform
s 

NCAs 

Provide information 
related to cross-
border activities and 
procedures 

No 

To be 
defined 
by 
EIOPA 

To be 
defined 
by 
EIOPA 

Pension tracking systems 

Digital and/or sectorial policy (when these 
are applicable) 

Explanation on how it aligns 

AI Act 

Not applicable 

EU Cybersecurity framework 

Without prejudice to Regulation (EU) 
2016/679, Member States shall ensure the 
security, integrity, authenticity and 
confidentiality of the data collected and 
stored for the purpose of this Directive.  

To be further detailed by NCAs 

eIDAS 

Others 

Not applicable 

// 

Collaborative platforms 

Digital and/or sectorial policy (when these 
are applicable) 

Explanation on how it aligns 

AI Act 

Not applicable 

EU Cybersecurity framework 

eIDAS 

Others 

EN 

Without prejudice to Regulation (EU) 
2016/679, Member States shall ensure the 
security, integrity, authenticity and 
confidentiality of the data collected and 
stored for the purpose of this Directive.  

To be further detailed by EIOPA 

To be further detailed by EIOPA 

// 

28 

  EN 

 
 
 
 
 
 
 
4.4. 

Interoperability assessment 

Digital public 
service or category 
of digital public 
services 

Collaborative 
platform 

Pension tracking 
systems 

Description 

Reference to the 
requirement 

Other 
interoperability 
solution 

Article 11; Article 
55a 

// 

Article 22a; Article 
37a 

// 

Information related 
to cross-border 
activities; 
information 
exchange and 
enhance 
collaboration 
between the relevant 
competent 
authorities where an 
IORP carries out, or 
intends to carry out, 
cross-border 
activities 

Up-to-date 
information on 
members’ and 
beneficiaries’ 
entitlements 

4.5.  Measures to support digital implementation 

Not applicable 

EN 

29 

  EN