Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (PEPP)
Date: 2025-11-20
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU Member State, capital market, consumer information, investment company, investment promotion, regulation of investments, single market, supplementary pension, sustainable finance

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 20.11.2025  COM(2025) 840 final 2025/0363 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (PEPP) (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

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. 

1 

The European Pillar of Social Rights  

EN 

1 

  EN 

 
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 
pensions. It thus reinforces the idea that improving people’s access to effective, transparent, 
and  affordable  retirement  saving  options  is  not  only  a  social  goal  but  also  an  economic 
necessity.  The  EU  should  therefore  promote  retail  participation  through  accessible,  well-
designed supplementary pension schemes, following successful national examples. 

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 the Political Guidelines 2024–20296, 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 
Letter7 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. 

The European Court of  Auditors  concluded in  20248 that the  EU had  ‘not  been  effective in 
strengthening  occupational  pensions  and  establishing  a  pan-European  personal  pension 
product’.  It  underscored  the  need  for  renewed  efforts  in  this  area  in  order  to  better  serve 
citizens’ retirement needs. 

Regulation  (EU)  2019/1238  on  a  pan-European  Personal  Pension  Product  (the  PEPP)9  was 
adopted  to  address  the  fragmented  and  uneven  development  of  personal  pension  markets 
across  the  EU.  Individuals  seeking  to  supplement  their  statutory  and  occupational  pensions 
had  only  limited  and  unequal  access  to  affordable  and  attractive  personal  pension  products. 
Market  fragmentation  made  it  difficult  for  providers  to  realise  economies  of  scale, 

2 
3 
4 
5 
6 
7 
8 
9 

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 
Political guidelines for the next European Commission 2024 – 2029 
Mission Letter 
European Court of Auditors, ‘Developing supplementary pensions in the EU’, Special report 14/2025 
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) 

EN 

2 

  EN 

 
diversifying  risks,  and  fostering  innovation.  This  in  turn  reduced  consumer  choice  and 
increased  costs  for  savers.  The  absence  of  a  harmonised  framework  also  constrained  cross-
border  activity,  with  few  providers  or  savers  operating  beyond  national  markets.  This 
situation  limited  the  depth  and  liquidity  of  EU  capital  markets  compared  with  other 
jurisdictions, where pension funds play a greater role as institutional investors. 

The review of the PEPP Regulation  aims to  ensure that the framework works better for  EU 
citizens. The PEPP initially did not achieve the envisaged commercial success and this review 
seeks to enhance the PEPP’s functionality and practical effectiveness, by establishing a solid 
and efficient basis for a personal pension scheme that complements statutory and occupational 
pension systems of the Member States. The revised framework aims to make the PEPP a more 
attractive  and  accessible  option  for  savers  across  the  Union  considering  the  different 
retirement  saving  preferences  and  ensuring  that  there  is  a  clear  offer  of  a  simple  scheme 
designed  to  be  transparent,  and  cost-effective,  thereby  keeping  production  and  distribution 
costs  low.  The  framework  will  not  only  simplify  the  development  of  a  streamlined  basic 
product,  but  also  facilitate  the  development  of  a  more  sophisticated  PEPP  with  additional 
investment and/or risk management options, thus enabling providers to offer more tailor-made 
solutions  that  reflect  different  risk  preferences,  market  conditions,  and  national  contexts. 
Depending  on  the  exact  design,  PEPPs  would  in  principle  also  be  able  to  invest  in  more 
diversified asset classes, such as broader categories of equity investments. This would allow 
PEPPs to better finance EU businesses in accordance with the EU’s priorities, including assets 
covered by the InvestEU program fostering the digital and green transition.  

• 

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 Community10; 

•  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 rights11; 

•  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 IORPs12; 

10 

11 

12 

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) 

EN 

3 

  EN 

 
•  Regulation (EU) 2019/1238 of 20 June 2019 on a pan-European personal pension 
product  (the  PEPP  regulation),  which  established  a  voluntary,  standardised 
personal pension framework across the EU13. 

This  proposal  builds  on  and  strengthens  the  framework  for  a  PEPP  set  out  in  the  PEPP 
Regulation. This is explained in more detail in Section 3 below. It is part of a broader pension 
package  that  includes  the  review  of  Directive  (EU)  2016/2341  (the  IORP  II  Directive),  the 
Commission  Recommendations  on  Pension  Dashboards,  Pension  Tracking  Systems,  and 
Auto-enrolment,  as  well  as  the  Chapeau  Communication  accompanying  the  Supplementary 
Pensions Package. The pension package is one of the key 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  will  require  a  comprehensive  range  of 
policy  measures  that  will  affect  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)  Investments  and  Financing;  (c)  Integration  and  Scale;  and  (d)  Efficient 
Supervision in the Single Market. Each heading is discussed in the following sections. 

The  Pensions  package  falls  under  the  ‘Citizens  and  Savings’  heading,  the  first  pillar  of  the 
SIU strategy which highlights the importance of responding to peoples’ needs and helping to 
foster  their  financial  security.  The  package  follows  the  publication  of  the  Commission’s 
Financial  Literacy  Strategy  for  the  EU14  and  the  Commission’s  Recommendation  on  the 
Savings and Investments Account (SIA)15. By proposing to strengthen the framework for the 
Pan-European Personal  Pension Product  (PEPP), the Commission  continues  to contribute  to 
the  SIU  objective  of  empowering  citizens  to  save  and  invest  for  their  future  through 
transparent,  competitive,  and  accessible  products.  Enhancing  the  PEPP  framework  will 
promote  competition  between  providers  and  ultimately  offers  retail  investors  and  savers  a 
wider  range  of  products  that  better  match  their  preferences  regarding  retirement  savings, 
investment risk and insurance coverage. By facilitating greater participation of retail savers in 
capital  markets,  the  Pensions  Package  also  contributes  to  achieving  the  broader  SIU 
objectives of mobilising household savings for productive investment. Increased participation 
in  financial  markets,  and  stronger  pension  funds  will  also  contribute  to  enhancing  funding 
opportunities  for  the  EU  economy  and  helping  financial  institutions  to  achieve  scale  and 
global  competitiveness.  It  thus  supports  the  EU’s  capacity  to  meet  its  long-term  investment 
needs, notably in the context of the green, social and digital transitions, which are essential for 
job creation and higher productivity. The review of the PEPP Regulation is therefore also in 
line with the European Commission’s broader strategy of rejuvenatinge the EU's economy, as 
outlined in the Competitiveness Compass16. 

13 

14 

15 

16 

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) 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the regions on a Financial Literacy Strategy for 
the EU, COM(2025) 681 final 
Commission Recommendation on Increasing the Availability of Savings and Investment Accounts with 
Simplified and Advantageous Tax Treatment, C/2025/6800 final 
Competitiveness Compass – European Commission  

EN 

4 

  EN 

 
The  review  of  the  Pan-European  Personal  Pension  Product  (PEPP)  Regulation  is  consistent 
with the implementation of Principle 15 of the European Pillar of Social Rights which affirms 
the  “right  to  adequate  old-age  income”  and  “decent  living  standards”  for  retirees.  As  a 
voluntary  personal  pension  product,  PEPP  is  intended  to  supplement  existing  statutory  and 
occupational pensions. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  amending  Regulation  (EU)  2019/1238  (the  PEPP  Regulation)  is  Article 
114  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  which  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 personal pension 
products.  The  proposal  improves  a  largely  standardised  pan-European  product,  available 
through passporting in all Member States, that will empower consumers to make full use of 
the  internal  market  by  offering  them  a  greater  choice  of  providers  (including  in  other  EU 
Member  States).  The  proposal  revises  the  core  features  of  the  PEPP,  such  as  authorisation, 
registration, distribution and advice, investment policy, and supervision.  

• 

Subsidiarity  

According  to  the  subsidiarity  principle,  EU  action  may  only  be  taken  if  the  envisaged  aims 
cannot  be  achieved  by  Member  States  alone.  The  PEPP  Regulation  was  established  at  EU 
level in 2019, because only the EU action can set a common regulatory framework for PEPP 
providers  that  benefit  from  passporting.  In  this  regard,  this  proposal,  like  the  Regulation  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.  

Personal  pension products  can in  principle  already  be offered  across 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  demographic  pressures  and  the  increasing  need  to  ensure  sustainable  and 
adequate retirement income.  

The framework established by  the PEPP  Regulation  has  not  achieved sufficient commercial 
uptake, largely due to the strong competition from national products and certain constraining 
features laid down in the PEPP Regulation. 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  personal  pension  regimes  would  be  disproportionate,  given  the 
diversity  of  national  markets  and  the  varying  levels  of  development  of  private  pension 
systems. 

In this  context,  a targeted revision of the PEPP framework  is a proportionate response. The 
proposed approach complements existing national regimes, but also ensures a sufficient level 
of  harmonisation  to  facilitate  cross-border  supply  and  enhance  consumer  choice.  The  key 
features  –  covering  distribution,  investment  policy,  provider  switching  and  cross-border 

EN 

5 

  EN 

portability – have been designed to ensure sufficient consumer protection and competitiveness 
without imposing unnecessary regulatory burdens.  

The  administrative  burden  of  the  proposal  is  expected  to  remain  limited  because  it  merely 
adjusts the features of an existing EU-wide product category. This makes it more attractive for 
long-term  savings  providers,  such  as  insurers,  pension  funds,  investment  firms,  asset 
managers  and  banks.  These  entities  are  already  subject  to  regulatory  oversight  by  national 
competent  authorities  under  existing  sectoral  frameworks.  Any  new  reporting  obligations 
would  be  proportionate  to  the  risks  arising  from  cross-border  activity  and  would  support 
effective market monitoring and consumer protection. 

• 

Choice of the instrument 

This  proposal  is  an  amendment  to  the  PEPP  Regulation.  The  instrument  chosen  is  an 
amending Regulation because no alternative means – legislative or operational – can be used 
to attain the objectives of this proposal. 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

• 
The Commission launched a targeted public consultation17 from 13 June 2025 until 29 August 
2025,  seeking  feedback  on  possible  revisions  to  the  PEPP  Regulation.  The  consultation 
received  a  total  of  112  submissions  from  a  diverse  group  of  stakeholders,  that  included 
business  associations,  companies,  consumer  organisations,  NGOs,  public  authorities,  and 
citizens,  representing  11  EU  Member  States  and  two  non-EU  countries.  The  stakeholders 
indicated that some practical difficulties hindering the current PEPP framework’s uptake and 
competitiveness.  There  was  broad  support  for  a  review  to  simplify  the  framework  and 
enhancing  its  ability  to  better  contribute  to  accessible  and  sustainable  pension  provision  in 
EU. 

The Commission launched a Call for Evidence18 on 23 June 2025, with a deadline of 21 July 
2025,  to  collect  general  comments,  opinions,  and  views  on  how  to  improve  the  existing 
framework for supplementary pensions and to share evidence on best practices. The Call for 
Evidence  received  a  total  of  47  submissions,  amounting  to  35  different  responses,  from 
various  organisations,  such  as  business  and  employer  associations,  NGOs,  consumer 
organisations,  and  citizens  (from  twelve  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 for the benefit of EU's  citizens 
and economy. 

• 

Collection and use of expertise 

In  a Staff Paper of 11 September 2024 on the future of the Pan European  Personal  Pension 
Product19, the European Insurance and Occupational Pensions Authority (EIOPA) proposed a 
broad reform of the product to enhance its attractiveness, scalability and capacity to contribute 
to supplementary pension provision across the EU. The core elements of the approach include 
maintaining  the  PEPP’s  foundational  features  of  simplicity,  transparency,  cost-efficiency, 

17 
18 
19 

Targeted consultation on supplementary pensions 
Call for evidence 
EIOPA Staff Paper on the future Pan-European Pension Product (PEPP),  

EN 

6 

  EN 

 
mobility and flexibility, while also removing supply, demand and structure-related barriers to 
take-up (such as removing the 1 % cost cap and the mandatory national sub-accounts, while 
shifting from an absolute cost ceiling to a value-for-money framework). 

On 16 June 2025, the Commission hosted a stakeholder forum20 to explore emerging trends in 
retirement provision across the EU. This  forum  highlighted best practices in Member States 
and  paves  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 PEPP Regulation was necessary to improve the PEPP. 

EIOPA submitted technical input requested by the Commission to support the development of 
supplementary  pensions  on  5  September  202521  and  enhance  the  supplementary  pension 
system. EIOPA advocated (i) the simplification of the PEPP’s features to enhance members’ 
outcomes by modifying the current 1% cost cap, (ii) the introduction of simplified advice, (iii) 
the  deletion  of  the  mandatory  sub-account  requirements,  (iv)  the  allowance  of  employer 
contributions and the incorporation of a value for money approach. 

• 

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 amending 
Regulation:  

Option  1  was  to  leave  the  PEPP  Regulation  unamended  and  relies  on  the  assumption  that 
more time is needed for the PEPP to gain commercial traction. The option was discarded. 

Option 2 would leave the entire design feature and distribution modalities to the discretion of 
the PEPP provider. The only regulatory constraint would be that the emerging product would 
have to be sold within a modified fee cap, which would be calculated excluding VAT. This 
option was discarded because most stakeholders raised the point in the targeted consultation 
that the fee cap has inhibited wide spread uptake of the PEPP. 

Option 3 was therefore based on the premise that the fee cap would be removed. This option 
would entail  a  Basic PEPP that is  designed to  remain affordable,  accessible, and simple for 
subscribers, despite the lifting of the fee cap via an efficient Value for Money approach, with 
the  aim  of  avoiding  extra  regulatory  burden.  It  contains  a  simple  lifecycle  glidepath  which 
would make it possible to gradually reduce risky assets as retirement approaches. Under this 
structure, it would also be possible to offer a small pocket of unlisted assets, of up to 5% of 
the total portfolio for additional diversification purposes in the initial stages of the lifecycle. 
This slightly riskier allocation would be is justified by the fact that savers invest into a PEPP 
for  a  multi-decade  period.  To  ensure  cost  efficiency,  the  Basic  PEPP  may  not  provide  any 
capital guarantees and must be suitable for sales without additional investment advice because 
it is suitable by design. Employers can use the Basic PEPP for auto-enrolment schemes as a 
cost-efficient default solution. PEPP providers may offer tailored PEPP only if they also offer 

20 
21 

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  

EN 

7 

  EN 

 
the  Basic  PEPP.  Tailored  PEPPs  would  present  additional  features  and  more  sophisticated 
investment  strategies,  but  like  the  Basic  PEPP,  they  would  also  be  subject  to  the  value-for-
money framework and included in EIOPA’s register. 

Option 4 is  the same as Option  3,  except that it would imply  dropping the requirement  for 
providers  to  combine  the  distribution  of  a  tailored  PEPP  with  a  Basic  PEPP.  This  option 
would provide a more tailor-made approach, but it would also be based on the assumption that 
this  costlier  retirement  proposition  is  justified  by  the  potential  for  higher  returns.  Option  4 
acknowledges different preferences of savers and also provides commercial opportunities for 
different types of providers.  

Option 4 is the selected option.  

There are no changes to the pay-out phase in agreement with the client under national law.  

• 

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’s tasks in relation to 
the  registration  process  are  already  established.  The  workload  associated  with  the  targeted 
adjustments to the application process or to the scope of the existing register should remain 
limited and is expected to be spread over time as the number of PEPPs grows. EIOPA should 
be able to manage these additional tasks within its existing resources. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

After  this  Regulation  has  entered  into  force,  the  Commission  will  monitor  key  mid-term 
performance indicators for the objectives. These indicators will include:  

– 

– 

– 

the  total  uptake  of  personal  pension  products  in  terms  of  assets  under  management 
and the geographical and sectorial distribution of PEPP providers and investments in 
and the respective split of the Basic versus the alternative PEPPs. This objective will 
show  how  the  PEPP  contributes  to  increasing  g  investment  in  the  EU  and  to 
completing the SIU);  

the number of PEPP registrations and the relative share of personal pension products 
(including national products and the PEPP) as a percentage of households’ financial 
assets (objective of improving the product features on the personal pension market); 
and 

the number of providers using a passport for cross-border activity. The data collected 
by  the  European  Supervisory  Authorities  (ESAs)  will  be  used  for  the  Value  for 
Money  assessment.  In  addition,  the  Commission  will  assess  the  extent  to  which 

EN 

8 

  EN 

Member  States  haven  taken  up  preferential  tax  treatment  for  the  PEPP  through 
national legislation. 

• 

Detailed explanation of the specific provisions of the proposal 

This  proposal  for  a  Regulation  amending  Regulation  (EU)  2019/1238 (‘PEPP  Regulation’) 
illustrates  the  Commission’s  efforts  to  make  the  PEPP  a  more  attractive  and  accessible 
personal  pension  product  across  the  EU.  The  proposed  changes  should  be  viewed  as  a 
comprehensive package that addresses supply and demand challenges, strengthens consumer 
protection and transparency, and enhances the market appeal of PEPPs. 

Definitions (Article 2 of PEPP Regulation) 

Additional  definitions  are  introduced  for  key  concepts  such  as  “advice  on  an  independent 
basis”  –  which  has  the  same  meaning  as  under  Directive  2014/65/EU22  –  and  “life-cycle 
investment  strategy,”  which  are  to  be  implemented  in  the  context  of  the  revised  PEPP 
framework.  These  definitions  clarify  expectations  for  providers  and  support  consistent 
implementation across Member States. 

Tax treatment (Article 3 of PEPP Regulation) 

To support PEPP uptake, the proposal requires Member States to ensure that the tax treatment 
of PEPPs is comparable to that of national personal pension products. 

Process of registration (Article 6 of PEPP Regulation) 

The  amendments  make  it  explicit  that  applicants  must  demonstrate  their  ability  to  provide 
value for money as part of the registration process. In case of an incomplete application, the 
applicant is granted 15 working days to provide the missing information. 

Deregistration (Article 8 of PEPP Regulation) 

The  proposal  requires  that  the  PEPP  provider  immediately  inform  PEPP  savers  of  a 
deregistration decision and of the options available to them, including the possibility to switch 
their  accumulated  capital  to  another  PEPP  provider  or  to  transfer  it  to  another  personal 
pension product, in both cases without delay or cost. 

Central public register (Article 13 of PEPP Regulation) 

The  amendments  extend  the  scope  of  the  central  public  register  maintained  by  EIOPA  to 
include historical data on costs, performance, and the summary risk indicator. 

22 

Directive  2014/65/EU  of  the European  Parliament  and  of  the  Council  of  15 May  2014 on  markets  in 
financial  instruments  and  amending  Directive  2002/92/EC  and  Directive  2011/61/EU  (OJ  L  173, 
12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) 

EN 

9 

  EN 

 
 
 
 
 
 
Sub-accounts (Article 18 of PEPP Regulation) 

The proposal removes the requirement to open at least two sub-accounts, thereby simplifying 
account management for PEPP providers. 

Product oversight and governance (POG) requirements and Value for Money (Article 25 
of PEPP Regulation) 

The POG framework is revised to integrate value-for-money considerations, in line with the 
ongoing  discussions  on  the  Retail  Investment  Strategy.  As  negotiations  on  the  Retail 
Investment Strategy (RIS) are still ongoing, the proposal makes a general cross-reference to 
Article 25 of Directive (EU) 2016/9723 (IDD), which is likely to be amended by the RIS and 
should therefore apply mutatis mutandis.  

Competent authorities will monitor compliance with value-for-money requirements. In cases 
of  underperformance,  PEPP  providers  must  demonstrate  that  their  costs  and  charges  are 
justified and proportionate. If the provider fails to do so, supervisors shall require corrective 
measures.  In  the  absence  of  such  measures,  the  competent  authority  shall  make  use  of  its 
powers, including issuing a deregistration decision.  

A Delegated Act will specify the methodology to develop supervisory benchmarks in relation 
to PEPPs.  

Key Information Document (KID) (Article 28 of PEPP Regulation) 

The  content  of  the  KID  is  expanded  for  auto-enrolment  PEPPs  and  updated  to  reflect  the 
revised Basic PEPP features. To ensure comparability, the proposal requires to disclose total 
aggregate costs expressed in monetary and percentage terms, to show the compound effects of 
the total costs on the investment over the previous 12 months and an estimation of the impact 
of  the  costs  on  the  final  capital  accumulated.  The  proposal  also  requires  that,  where 
applicable, costs related to the capital guarantee be explicitly and separately disclosed. 

Advice (Articles 34 and 43 of PEPP Regulation) 

PEPP  providers  or  distributors  must  provide  prospective  savers  with  personalised  pension 
benefit projections for the recommended products. The advice must also indicate the existence 
of the central register where costs and performance can be compared. 

The proposal clarifies that no advice is required for the Basic PEPP. Where advice is provided 
at  the saver’s  request,  it must be on an independent  basis. Independent  advice for the Basic 
PEPP does not require an assessment of the saver’s knowledge or expertise, in line with the 
ongoing discussions under the Retail Investment Strategy. 

23 

Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance 
distribution (recast) (OJ L 26, 2.2.2016, p. 19, ELI: http://data.europa.eu/eli/dir/2016/97/oj) 

EN 

10 

  EN 

 
 
 
 
 
PEPP Benefit Statement (Article 36 of PEPP Regulation) 

The content of the PEPP Benefit Statement is enhanced to include all costs (both in monetary 
and  percentage  terms)  for  the  previous  12  months  and  over  the  entire  contract  term.  The 
proposal  also  requires  that  the  Statement  indicate  the  existence  of  the  central  register 
comparing costs and performance of PEPPs. 

Pre-retirement and decumulation information (Articles 38 and 60 of the PEPP Regulation) 

The scope of information required to be provided during the pre-retirement and decumulation 
phases  are  clarified  and  enhanced.  The  proposal  also  introduces  a  requirement  for  all 
providers of PEPPs – not only Basic PEPPs – to provide personal retirement planning support.  

PEPP investment rules (Article 41 of the PEPP Regulation) 

The  prudent  person  rule  is  replaced  by  a  prudent  person  principle,  explicitly  requiring 
consideration  of  ESG  risks  and  the  long-term  impact  of  investment  decisions.  Assets  must 
predominantly be invested not only on regulated markets but also on multilateral or organised 
trading facilities. 

Basic and tailored PEPP features (Articles 4, 28, 42, and 46 of the PEPP Regulation) 

Providers  are  no  longer  required  to  offer  a  Basic  PEPP  when  offering  more  sophisticated 
PEPPs, and there are no limits on the number of PEPP variants. 

The Basic PEPP must rely on a life-cycle investment strategy rather than a ‘hard’ guarantee. 
The  main  qualitative  features  of  this  strategy  are  defined  in  the  proposal.  Investments  other 
than cash must be made at least 95% in financial instruments listed in Article 25(4)(a), points 
(i) to (iv), of Directive 2014/65/EU. 

The  proposal  requires  that  tailored  PEPPs,  similarly  to  Basic  PEPPs,  ensure  an  appropriate 
level  of  protection  for  PEPP  savers.  Such  protection  may,  however,  be  achieved  through  a 
wider range of risk-mitigation techniques, rather than being restricted to life-cycle investment 
strategies. 

Several provisions of Delegated Regulation (EU) 2021/473 are repealed to align with the new 
framework. 

Workplace PEPPs (Articles 33, 39a, 47, and 57 of the PEPP Regulation) 

The  proposal  provides  that  Member  States  shall  not  prevent  employer  contributions  to  a 
PEPP, including for auto-enrolment schemes, subject to national social and labour law. In the 
case of auto-enrolment, where allowed under national, social and labour law, employers may 
define default decumulation pathways. 

EN 

11 

  EN 

 
 
 
 
 
Employers must promptly transmit key information, including the KID, to employees in the 
case  of  auto-enrolment.  PEPP  Benefit  Statements  for  workplace  PEPPs  must  also  include 
information on employer contributions and cumulative costs. 

Pension tracking systems (Article 51a of the PEPP Regulation) 

PEPP providers and distributors must transmit all necessary information to pension tracking 
systems  in  a  standardised  and  interoperable  format,  enabling  accurate  aggregation  of 
accumulated  value,  accrued  rights,  and  projected  benefits.  PEPP  providers  remain  fully 
responsible for data accuracy. 

Switching rights and transfers (Articles 56a and 56b of the PEPP Regulation) 

The amendments  ensure that PEPP savers  have the right to  transfer their savings to  another 
PEPP  or  to  a  national  personal  pension  product  without  delay  or  cost  if  their  PEPP  is 
deregistered. Member States must prevent discriminatory obstacles to such transfers. 

Supervisory powers (Articles 63–65 of the PEPP Regulation) 

Competent authorities may prohibit or restrict PEPP distribution in cases of consistent failure 
to provide value for money. EIOPA may intervene directly in certain cases. EIOPA may also 
set up collaboration platforms, settle disagreements, or request joint inspections in the interest 
of PEPP savers. 

EN 

12 

  EN 

 
 
 
2025/0363 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2019/1238 on a pan-European Personal Pension Product 
(PEPP) 

(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 114 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  Union’s  ageing  population  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 
multi-layered 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) 

(4) 

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 
part  of  these  savings  for  long-term  investment,  generating  higher  returns  for  savers, 
which would correspond to their retirement needs.  

Personal pensions are a key link between long-term savers and long-term investment 
opportunities,  helping  to  deepen  capital  markets  and  expand  the  supply  of  stable 
funding for the real economy. Pensions funds are an important category of institutional 
investors  that  can  help  financing  productive  investments,  supporting  growth, 
innovation  and  the  green  and  digital  transitions,  which  will  create  better  job 
opportunities and higher productivity.  

1 
2 

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

EN 

13 

  EN 

 
(5) 

(6) 

(7) 

(8) 

(9) 

The  Savings  and  Investments  Union  (SIU)  announced  by  the  Commission  in  its 
Communication of 19 March 20153 aims to enable citizens to save and invest for their 
future, channel investments towards the priorities of the Union, deepen integration and 
scale  in  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 
personal  pensions,  embodies  that  citizen-centred  approach.  The  pan-European 
Personal  Pension  Product  (PEPP)  is  designed  to  give  Union  citizens  access  to  a 
simple, transparent, and portable product that they can trust, helping them to save with 
confidence and to  plan for their retirement wherever they live or work in  the Union. 
By revitalising the PEPP framework, the Union seeks not only to strengthen citizens’ 
financial  security  but  also  to  channel  long-term  savings  towards  productive 
investments that support the growth, resilience, and green and digital transitions of the 
Union. 

Experience  with  the  pan-European  Personal  Pension  Product  (PEPP)  established  by 
Regulation (EU) 2019/1238 of the European Parliament and of the Council4 has shown 
very  limited  take-up,  with  only  two  providers  active  across  the  Union  at  the  end  of 
2025.  
In  its  conclusions  of  20  March  20255,  the  European  Council  called  ‘on  the 
Commission to swiftly propose, in 2025, improvements to the existing pan-European 
personal pension product’.  

To  revive  the  initial  objectives  of  Regulation  (EU)  2019/1238,  including  the 
improvement of a level playing field for personal pension providers and the integration 
of the internal market for personal pensions, and to support the development of viable 
retirement  savings  options,  it  is  necessary  to  create  a  more  flexible  and  innovation-
friendly  framework.  Such  a  framework  should  enable  PEPP  providers  to  offer 
diversified and cost-effective products that deliver value for money and serve citizens’ 
long-term  retirement  interests  and  should  enhance  peoples’  options  for  long-term 
savings in line with their financing needs in retirement. 

Tax incentives play an important role in encouraging the take-up of personal pension 
products in several Member States. Tax incentives for personal pension products can 
take  different  forms.  In  many  Member  States,  the  contributions  paid  for  personal 
pension  products  qualify  for  some  form  of  tax  relief.  Similarly,  in  many  Member 
States, the investment results of the personal pension products are not subject to tax, 
either on the basis of an explicit exemption  or de facto  exemption,  if the provider is 
subject  to  tax  but  can  deduct  the  dotations  to  the  pension  reserve  from  the  tax  base. 
Tax  incentives  may  also  be  granted  in  the  decumulation  phase,  by  applying  a 
favourable tax rate to the out-payment of the personal pension. The national treatment 
principle applies to  PEPP savers.  Therefore, it should  be possible  for a  PEPP that is 

3 

4 

5 

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. 
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 (PEPP) (OJ L 198, 25.7.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/1238/oj) 
European Council Meeting (20 March 2025) – Conclusions. 

EN 

14 

  EN 

 
objectively  comparable  to  a  personal  pension  product  marketed  in  a  given  Member 
State to benefit from the same tax relief granted to the personal pension product in that 
Member State. That should also apply where the PEPP is provided by a provider from 
another  Member  State.  The  same  no  less  favourable  treatment  should  also  apply  to 
measures under national law relating to other incentives for personal pension products 
or measures having an equivalent purpose or effect. 

(10)  To foster the uptake of PEPPs, it is essential that a PEPP provides value for money to 
savers  and  is  therefore  attractive  and  competitive.  To  ensure  that  potential  PEPP 
providers design products in line with those objectives, the application for registration 
of  a  PEPP  should  demonstrate  capacity  to  comply  with  the  product  oversight  and 
governance requirements and show how the product is designed to provide value  for 
money to PEPP savers. 

(11)  To  ensure  that  the  most  cost-efficient  products  attract  a  growing  share  of  savings, 
thereby  contributing  to  the  consolidation  and  development  of  the  personal  pension 
sector, competition in the PEPP market  should be fostered. To support that objective 
and  help  prospective  savers  make  informed  choices,  the  central  public  register 
maintained by EIOPA should be extended to include information on the past costs and 
performance of PEPP products. That extension should be done without creating undue 
reporting burdens for PEPP providers, as the relevant information will be available in 
the  Key  Information  Document.  To  ensure  accuracy  and  comparability,  the 
information in the register should be updated at least annually. 

(12)  Effective supervision of cross-border PEPPs is essential to maintain trust in PEPPs and 
to  protect  savers.  To  ensure  consistent  application  of  Union  rules  and  address  cases 
where  the  competent  authority  of  the  home  Member  State  fails  to  take  appropriate 
measures, it is necessary to grant EIOPA powers to directly intervene in problematic 
cross-border cases. Such powers should include the possibility to settle disagreements 
in  accordance  with  Article  19  of  Regulation  (EU)  No  1094/2010  of  the  European 
Parliament  and  of  the  Council,  thereby  ensuring  coherent  and  effective  supervision 
across the Union, or to require the home authority to organise a joint onsite inspection 
with host authorities and EIOPA, to swiftly address risks to PEPP savers. 

(13)  Article  18(3)  of  Regulation  (EU)  2019/1238  requires  each  PEPP  provider  to  offer 
national  sub-accounts  for  at  least  two  Member  States.  That  requirement  adds 
operational  complexity and hinders the development and manufacturing of PEPPs.  It 
also  makes  PEPPs  effectively  a  niche  product,  targeting  only  a  small  portion  of  the 
Union’s  working-age  population  that  may  need  a  cross-border  pension  product,  and 
thereby  limiting  the  potential  for  economies  of  scale.  For  those  reasons,  the 
requirement to offer at least two sub-accounts should be removed. 

(14)  The level of costs and charges associated with personal pension products can have a 
significant impact on the final pension outcome for savers, which may not always be 
transparent  or  easily  comparable.  The  absence  of  clear  and  harmonised  criteria  to 
assess  whether  costs  are  justified  and  proportionate  to  the  returns  offered  risks 
undermining trust in PEPPs and discouraging participation. It is therefore necessary to 
establish  a  structured  value-for-money  framework,  ensuring  that  PEPPs  deliver  fair 
outcomes  to  savers  and  that  their  costs  and  performance  are  proportionate  to  their 
characteristics, objectives and risk–return profile, thus offering good value for money. 

(15)  To ensure that PEPPs are designed and distributed in the best interests of savers, the 
value-for-money assessment should be embedded within the broader product oversight 
and  governance  framework.  The  product  approval  process  should  identify  the  target 

EN 

15 

  EN 

market,  objectives  and  needs  of  savers,  and  demonstrate,  before  the  product  is 
approved  for  distribution,  that  the  total  costs  and  charges  are  justified  and 
proportionate in view of the expected benefits and performance. To build consumers’ 
trust  in  PEPPs,  a  PEPP  that  does  not  meet  these  criteria  should  not  be  approved, 
manufactured or distributed. 

(16)  To  ensure  a  high  level  of  protection  for  PEPP  savers  and  to  promote  regulatory 
coherence,  the  product  oversight  and  governance  requirements  applicable  to  PEPP 
providers  should  be  strengthened.  This  warrants  aligning  with  those  set  out  under 
Directive (EU) 2016/976 as amended in the context of the Retail Investment Strategy, 
and accounting for specificities of PEPP as a long-term savings product. 

(17)  Since the registration of a PEPP takes place before it is possible to ascertain  whether 
the  product  effectively  delivers  value  for  money  to  savers  in  practice,  some  PEPPs 
may  in  practice  offer  lower  value  for  money  than  initially  indicated.  Competent 
authorities  should  have  the  powers  to  monitor  developments  and  should  be  able  to 
require corrective measures, where necessary. 

(18)  Article 42 of  Regulation (EU) 2019/1238  requires that PEPP providers distribute the 
Basic  PEPP  if  they  also  want  to  distribute  alternative  variants.  That  requirement 
constraints  some  providers’  ability  and  interest  in  distributing  PEPPs,  as  the  Basic 
PEPP  may  not  fit  with  their  business  model  or  strategy.  In  addition,  the  current 
limitation  to  a  maximum  of  five  alternative  options  restricts  providers’  ability  to 
design products that reflect the preferences, circumstances and risk profiles of savers. 
Allowing providers to determine the number and nature of investment options  would 
enable  them  to  offer  more  tailored  solutions,  including  personalised  PEPPs  suited  to 
workplace  arrangements  or  auto-enrolment.  It  is  therefore  necessary  to  provide  for 
greater  flexibility  to  PEPP  providers  while  ensuring  that  transparency,  comparability 
and  consumer  protection  remain  safeguarded  through  appropriate  disclosure  and 
product governance requirements. 

(19)  Article 45(2) of Regulation (EU) 2019/1238 requires that the Basic PEPP is subject to 
a cap on costs and fees of 1 %, while Article 34(2) of that Regulation obliges a PEPP 
provider or PEPP distributor to provide advice prior to the conclusion of a Basic PEPP 
contract.  Those  requirements  have  raised  concerns  among  potential  providers  and 
distributors,  as  those  requirements  are  deemed  to  limit  the  commercial  viability  of 
offering PEPPs, including through digital channels. Furthermore, the fixed 1 % cap on 
fees is not necessarily the most effective way to protect savers and beneficiaries, and 
does not reflect a proportional relationship between the benefits and returns offers to 
savers,  the  expenses  borne  by  providers,  and  the  fees  charged.  Providers  often  incur 
losses in the early years of a contract, when acquisition and setup costs are high, while 
savers may be disadvantaged  by a fee cap  in  later years as  their accumulated capital 
gros  and  the  absolute  costs  charged  increase,  even  though  less  management  effort  is 
required. The 1% fee cap may also lead to an unlevel playing field due to differences 
in  VAT  treatment  across  Member  States.  Therefore,  to  promote  the  uptake  of  the 
PEPP, and ensure a sustainable, high-quality product, it is necessary to remove those 
requirements.  To  preserve  consumer  protection  and  ensure  that  the  Basic  PEPP 
remains a simple product suitable for retirement purposes, it should be designed with 
an  embedded  life-cycle  investment  strategy,  providing  a  suitable  balance  between 

6 

Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance 
distribution (recast) (OJ L 26, 2.2.2016, p. 19, ELI: http://data.europa.eu/eli/dir/2016/97/oj) 

EN 

16 

  EN 

 
growth and risk mitigation. For the same reason, the assets of the Basic PEPP should 
be  invested  predominantly  in  listed  and  non-complex  assets  within  the  meaning  of 
Article 25(4), first subparagraph, of Directive 2014/65/EU of the European Parliament 
and  of  the  Council7.  To  promote  diversification  while  maintaining  simplicity, 
providers  of the  Basic  PEPP should be allowed to allocate  a small  portion of assets, 
not exceeding 5 %, to other financial instruments, including alternative assets. 

(20)  To  ensure  the  quality  of  advice  and  to  safeguard  the  interests  of  prospective  PEPP 
savers,  any  advice  provided  in  relation  to  the  Basic  PEPP  should  be  given  on  an 
independent basis and only upon the request of the client. Considering both the non-
complex  nature  of  the  Basic  PEPP  and  the  independent  character  of  the  advice,  it  is 
appropriate to provide that, where such advice is given, the PEPP distributor is under 
no  obligation  to  obtain  information  on  the  prospective  PEPP  saver’s  knowledge  and 
experience. That approach ensures that the advice remains objective, proportionate and 
efficient for distributors, while maintaining a high standard of investor protection and 
promoting the accessibility of the  Basic  PEPP  across the Union through  a variety  of 
distribution  channels.  For  the  tailored,  more  sophisticated  PEPPs,  advice  remains 
essential  to  provide  the  most  suitable  and  tailor-made  offer  to  prospective  savers, 
taking into account their knowledge, financial situation, and risk appetite. 

(21)  Article  41(1)  of  Regulation  (EU)  2019/1238  currently  refers  to  the  prudent  person 
rule, which has traditionally been associated with a prescriptive approach, specifying 
in detail the types of assets in which investments may be made. To promote flexibility, 
innovation  and  efficient  portfolio  management  while  maintaining  a  high  standard  of 
protection  for  savers,  that  rule  should  be  replaced  with  the  prudent  person  principle, 
which  reflects  a  principle-based  approach  focused  on  the  proper  identification, 
measurement, monitoring and management of risks. Under that principle, all types of 
assets  can  be  considered  for  investment,  provided  that  the  PEPP  provider  applies 
appropriate risk management practices and ensures that the overall portfolio remains 
aligned with the objectives, risk profile and best interests of the PEPP savers.  

(22)  Employers’  contributions,  including  through  auto-enrolment  arrangements,  have 
proven  effective  in  overcoming  behavioural  barriers  to  savings,  including  inertia  or 
lack  of  financial  literacy,  while  fostering  trust,  engagement,  and  participation  in 
supplementary  pensions.  Explicitly  recognising  that  employers  are  allowed  to  make 
voluntary contributions to a PEPP could significantly enhance the visibility, relevance, 
and  uptake  of  PEPPs,  particularly  among  underserved  groups,  including  low-income 
and  part-time  workers  and  young  workers  early  in  their  careers.  Similarly,  allowing 
employers to  select  the PEPP in the context of  a workplace arrangement  using auto-
enrolment  could  further  strengthen  the  uptake  of  the  PEPP  and  offer  employees, 
especially  in  Member  States  with  less  developed  occupational  pension  systems,  the 
possibility  to  invest  their  savings  for  retirement  in  well-regulated  and  cost-effective 
products. Member States should therefore not prevent employers from contributing to 
PEPPs  and  should  ensure that such  contributions  are supported by  clear rules on  the 
provision of information to employees. Without prejudice to the personal nature of the 
PEPP, Member Stats should also be able to  allow PEPPs to be provided as part of a 
workplace arrangement using auto-enrolment, where this is in line with national social 
and  labour  laws,  compatible  with  the  organisation  of  pension  systems  and  with 

7 

Directive  2014/65/EU  of  the European  Parliament  and  of  the  Council of  15  May 2014 on  markets  in 
financial  instruments  and  amending  Directive  2002/92/EC  and  Directive  2011/61/EU  (recast),  (OJ  L 
173 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) 

EN 

17 

  EN 

 
collective  agreements,  and  does  not  interfere  with  the  existing  occupational  pension 
schemes.  To  facilitate  the  use  of  the  PEPP  in  a  workplace  context,  several 
amendments  to  Regulation  (EU)  2019/1238  are  necessary  to  ensure  that  no  undue 
obstacles hinder employers’ contributions and to adapt the relevant framework to the 
specificities of workplace arrangements. 

(23)  Savings accumulated in personal pension products are by nature long-term. However, 
to facilitate the take-up of PEPPs, it is important that Member States do not hinder the 
transfer  of  other  retirement  savings  to  PEPPs.  To  make  such  transfers  attractive, 
Member  States  should  ensure  that  PEPPs  are  not  subject  to  discriminatory  or 
disproportionate financial or administrative obstacles that would make a transfer to a 
PEPP  more  costly  than  transfers  between  other  personal  pension  products.  For  the 
same  reason,  PEPPs  should  also  benefit  from  the  same  tax  treatment  as  comparable 
national personal pension products.  

(24) 

In addition, where a PEPP has been deregistered from the register referred to in Article 
8(1)  of  Regulation  (EU)  2019/1238,  savers  and  beneficiaries  should  benefit  from 
enhanced  protection,  including  the  right  to  switch  to  another  PEPP  provider  or  to 
transfer  their  accumulated  capital  to  another  personal  pension  product  without  delay 
and free of charge. 

(25)  Article  60  of  Regulation  (EU)  2019/1238  requires  that  PEPP  providers  offer  PEPP 
savers who invest in a Basic PEPP personal retirement planning on the sustainable use 
of the capital accumulated in the PEPP. However, all PEPP savers should have a clear 
understanding of their financial situation and of the options available to them as they 
approach  retirement.  Access  to  timely  and  comprehensive  pre-retirement  advice  is 
essential  to  enable  savers  to  make  informed  decisions  regarding  the  management  of 
their  retirement  income.  Therefore,  the  provision  of  pre-retirement  advice  should 
apply to all PEPP savers, and not only to those investing in the Basic PEPP. 

(26)  Where a PEPP is distributed across borders, effective supervision of PEPP providers 
and  distributors  requires  close  cooperation  and  consistent  approaches  among 
competent authorities across the Union. Divergences in supervisory actions may create 
uncertainty for market participants and lead to unequal levels of consumer protection. 
To strengthen supervisory coordination and ensure proportionate and consistent action 
in  cases  where  the  interests  of  PEPP  savers  or  beneficiaries  may  be  at  risk,  it  is 
necessary to formalise the role of the European Insurance and Occupational Pensions 
Authority  (EIOPA)  as  a  facilitator  in  finding  appropriate  solutions.  To  that  end, 
EIOPA  should  be  empowered  to  set  up  and  coordinate  collaboration  platforms 
bringing  together  the  relevant  competent  authorities,  to  promote  the  exchange  of 
information,  support  convergence  of  supervisory  practices,  and,  where  appropriate, 
assist  in  resolving  disagreements  between  authorities  in  accordance  with  its  powers 
under Regulation (EU) No 1094/2010. 

(27)  The provisions set out in Regulation (EU) 2019/1238 ensure a high level of protection 
for  PEPP  savers  and  PEPP  beneficiaries.  This  Regulation  removes  the  fee  cap  for 
PEPP.  Accordingly,  national  provisions  should  not  reintroduce  such  caps  or  similar 
limitations  applicable  to  PEPP  that  would  affect  the  uniform  application  of  this 
Regulation. 

(28)  Regulation (EU) 2019/1238 should therefore be amended accordingly. 

EN 

18 

  EN 

(29)  Regulation (EU) 2016/679 of the European Parliament and of the Council8 applies to 
the  processing  of  personal  data  for  the  purposes  of  this  Regulation.  Member  States 
should ensure that processing of data carried out in application of this Regulation fully 
respects Directive 2002/58/EC of the European Parliament and of the Council9 where 
that Directive is applicable. 

(30)  Since the objectives of this Regulation, namely to enhance PEPP saver protection and 
improve  PEPP  saver  confidence  in  PEPPs,  including  where  those  products  are 
distributed cross-border, cannot be sufficiently achieved by the Member States but can 
rather, by reason of its effects, be better achieved at Union level the Union may adopt 
measures, in accordance with the principle of subsidiarity as set out in Article 5 of the 
Treaty on European Union. In accordance with the principle of proportionality, as set 
out  in  that Article, this Regulation  does not  go beyond what  is  necessary in  order to 
achieve those objectives. 

(31) 

In  order  to  allow  competent  authorities,  PEPP  providers  and  PEPP  distributors 
sufficient  time  to  adapt  to  the  requirements  of  this  Regulation,  it  is  appropriate  to 
allow  for  one  year  for  the  application  of  this  Regulation  to  ensure  effective 
implementation and compliance. 

HAVE ADOPTED THIS REGULATION: 

Article 1 
Amendments to Regulation (EU) 2019/1238  

Regulation (EU) 2019/1238 is amended as follows: 

(1) 

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

‘(34) ‘advice on an independent basis’ means advice in relation to which  the PEPP 
provider or PEPP distributor: 

(a) 

assesses a sufficiently large number of personal pension products available on 
the  market  which  are  sufficiently  diversified  with  regard  to  their  type  and 
product providers to ensure that the prospective PEPP saver’s objectives can be 
suitably  met  and  shall  not  be  limited  to  personal  pension  products  issued  or 
provided  by  entities  having  close  links  with  the  PEPP  provider  or  PEPP 
distributor;  

(b)  does not accept and retain fees, commissions or any monetary or non-monetary 
benefits paid or provided by any third party or a person acting on behalf of a 
third  party  in  relation  to  the  provision  of  the  service  to  prospective  PEPP 
savers; 

(35)  ‘life-cycle  investment  strategy’  means  an  investment  strategy  that  adjusts  the 
level of risk attached to investments according to a predetermined glide path directed 
at  mitigating  investment  risk  and  providing  a  reasonable  degree  of  long-term 

8 

9 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (General Data Protection Regulation), (OJ L 119 4.5.2016, 
p. 1, ELI: http://data.europa.eu/eli/reg/2016/679/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, (OJ L 
201 31.7.2002, p. 37, ELI: http://data.europa.eu/eli/dir/2002/58/oj). 

EN 

19 

  EN 

 
appreciation, taking into account the individual’s age or retirement date, and where 
relevant, the pay-out profile of the product, to minimise the risk of large losses.’; 

(2) 

in Article 3, the following subparagraph is added: 

‘Member  States  shall  ensure  that  PEPPs  receive  a  tax  treatment  that  is  not  less 
favourable  than  that  granted  to  other  personal  pension  products.  Where  a  Member 
State applies different types or levels of tax relief with regard to such other personal 
pension products, PEPP shall be eligible for the most favourable treatment available 
under the law of that Member State.’; 

(3) 

in Article 4(2), point (a) is replaced by the following: 

‘(a)    where the Basic PEPP referred to in Article 45 is offered, a description of the 
Basic PEPP, including information on the life-cycle investment strategy;’; 

(4) 

Article 6 is amended as follows: 

(a) 

in paragraph 2, the following point (fa) is inserted: 

‘(fa)  documentation  that  demonstrates  compliance  with  product  oversight  and 
governance  requirements  referred  to  in  Article  25,  including  information  on 
how the PEPP is designed to provide value for money to PEPP savers;’; 

(b) 

in  paragraph  3,  second  subparagraph,  the  first  sentence  is  replaced  by  the 
following: 

‘The competent authorities shall set a time limit, not exceeding 15 working days, by 
which  the  applicant  is  to  provide  additional  information,  if  the  application  is  not 
complete.’; 

(c) 

in paragraph 5, the first subparagraph is replaced by the following: 

‘Within  five  working  days  of  taking  a  decision  for  registration  of  the  PEPP, 
competent  authorities  shall  communicate  to  EIOPA  the  decision,  as  well  as  the 
information and documents referred to paragraph 2, points (a), (b), (d), (f), (fa) and 
(g), and shall inform the applicant PEPP provider accordingly.’; 

(5) 

in Article 8(4) the following subparagraph is added: 

‘The  PEPP  provider  shall,  immediately  upon  being  notified  of  the  deregistration 
referred  to  in  the  first  subparagraph,  inform  all  PEPP  savers  thereof  in  a  clear, 
accurate and comprehensible manner. Such information shall include: 

(a)  

the fact of deregistration and the date on which it takes effect; 

(b)  

the options available to the PEPP saver, including the right to request, without 
delay and free of charge, a switch of his or her accumulated capital to another 
PEPP provider or a transfer to another personal pension product; 

(c)   any other relevant information necessary for the PEPP saver to exercise his or 

her rights effectively.’; 

(6) 

in Article 13, paragraph 1 is replaced by the following: 

‘1.  EIOPA  shall  keep  a  central  public  register  identifying  each  PEPP  registered 
under this Regulation, the registration number of the PEPP, the PEPP provider of this 
PEPP, the competent authorities of the PEPP provider, the date of the registration of 
the PEPP, whether the PEPP is a Basic PEPP or a tailored PEPP, a complete list of 
Member States in which this PEPP is offered and a complete list of Member States 
for which the PEPP provider offers a sub-account. The register shall also indicate, for 

EN 

20 

  EN 

each PEPP registered, the total annual costs and  the average past performance over 
the  previous  one,  three,  five  and  ten  years,  and  summary  risk  indicators,  all  as 
disclosed in the key information document referred to in Article 26 The register shall 
be publicly available in electronic format and shall be kept up to date.’; 

(7) 

Article 18 is amended as follows: 

(a) 

paragraph 2 is replaced by the following: 

‘2.  When proposing a PEPP, the PEPP provider or PEPP distributor shall provide 
prospective  PEPP  savers  with  information  on  the  portability  service  and  on  which 
sub-accounts, if any, are immediately available.’; 

(b)  paragraph 3 is deleted; 

(8) 

in Article 23, the following paragraph 3 is added: 

‘3.  Employers  in  the  cases  referred  to  in  Article  47(3)  and  (4)  shall  not  be 
considered acting as PEPP distributors.’; 

(9) 

Article 25 is replaced by the following: 

‘Article 25 
Product oversight and governance requirements 

1. 
PEPP providers shall establish, maintain, operate and review a process for the 
approval  of  each  PEPP,  or  significant  adaptations  of  an  existing  PEPP,  before  that 
PEPP is marketed or distributed to PEPP customers. 

The product approval process shall be proportionate and appropriate to the nature of 
the PEPP, and shall contain a value-for-money assessment which at the initial stage 
of  the  product  design  and  approval  process  is  based  on  reasonable  projections  and 
assumptions reflecting plausible expectations. 

Article  25  of  Directive  (EU)  2016/97  of  the  European  Parliament  and  of  the 
Council*,  together  with  any  delegated  acts  adopted  pursuant  to  that  Article,  shall 
apply mutatis mutandis. 

2. 
Competent  authorities  shall  monitor  the  PEPPs  offered  on  their  market  and 
evaluate them against relevant supervisory benchmarks used for the value for money 
assessment.  Competent  authorities  that  identify  PEPPs  that  deviate  from  the 
applicable  benchmark  or  where  they  decide  to  carry  out  a  control  for  any  other 
reason, they shall require the PEPP provider concerned to provide evidence that, as a 
result of the value-for-money assessment carried out in accordance with paragraph 1, 
the costs and charges of the PEPP are justified and proportionate and the PEPP meets 
the objectives and needs of the target market. 

Competent authorities that conclude that the evidence has not been provided or that 
the costs and charges of the PEPP are not justified and proportionate or that the PEPP 
does not meet the objectives of the target market, shall require the PEPP provider to 
take  measures  to  ensure  compliance  with  the  product  oversight  and  governance 
requirements.  In  the  absence  of  such  measures,  the  competent  authorities  shall  use 
their powers under Articles 8, 62 and 63. 

3. 
The  Commission  shall  be  empowered  to  supplement  this  Regulation  by 
adopting  delegated  acts  in  accordance  with  Article  72  to  further  specify  the 
principles set out in this Article, including,  

EN 

21 

  EN 

(a) 

the adjustments to the methodology applicable to value for money benchmarks 
for  insurance-based  investment  products  under  Article  25  of  Directive  (EU) 
2016/97,  that  are  necessary  for  the  development  of  relevant  supervisory 
benchmarks referred to in paragraph 2, first subparagraph, of this Article. The 
adjustments  shall  reflect  the  longer-term  nature  of  the  PEPP  with  limited 
redeemability,  and  shall  ensure  that  PEPPs  are  compared  with  groups  of 
comparable personal pension products manufactured and distributed in one or 
more Member States.  

(b) 

the criteria to determine whether the costs and charges of a PEPP are justified 
and proportionate within the meaning of paragraph 2, first subparagraph. 

Those  delegated  acts  shall  take  into  account  in  a  proportionate  way  the  activities 
performed, the nature of the PEPPs sold and the nature of the distributor.  

______ 

Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on 

* 
insurance distribution (OJ L 26, 2.2.2016, p. 19, ELI: http://data.europa.eu/eli/dir/2016/97/oj).’; 

(10) 

Article 28(3) is amended as follows: 

(a) 

point (c) is amended as follows: 

(i) 

point (iii) is replaced by the following: 

‘(iii)  the following indication: 

– 

– 

for the Basic PEPP, that the Basic PEPP product applies a life cycle 
investment strategy; 

for  a  tailored  PEPP,  that  the  PEPP  applies  a  risk-mitigation 
technique which shall be described;’; 

(ii) 

the following points (xv) to (xviii) are added: 

‘(xv)  where  the  PEPP  is  provided  to  an  employee  as  part  of  a  workplace 

arrangement using auto-enrolment , the following information: 

– 

– 

– 

the opt out rights agreed at the time of enrolment; 

applicable vesting rules; 

where  applicable,  the  default  decumulation  pathways  or  the  other 
different decumulation options; 

(xvi)  where a PEPP provider offers several investment options, a description of 

the range of investment options offered by that provider;  

(xvii)  an  indication  that  under  Union  law  a  PEPP  may  be  either  Basic  or 
tailored, and the main differences between the two types of PEPPs; 

(xviii) information that all registered PEPPs are available in the central public 
register  referred  to  in  Article  13,  including  the  internet  link  to  that 
register.’; 

(b) 

in point (f), the first subparagraph is replaced by the following: 

‘under a section titled ‘What are the costs?’, the costs associated with an investment 
in the PEPP, comprising both direct and indirect costs to be borne by the PEPP saver, 
including one-off and recurring costs, presented by means of summary indicators of 
those costs and, to ensure comparability, total aggregate costs expressed in monetary 

EN 

22 

  EN 

and  percentage  terms,  to  show  the  compound  effects  of  the  total  costs  on  the 
investment over the previous 12 months and an estimation of the impact of the costs 
on the final capital accumulated. Where applicable, the costs charged for the capital 
guarantee shall be explicitly and separately disclosed.’; 

(11) 

in Article 33, the following paragraph 2a is inserted: 

‘2a.  Where  the  PEPP  is  provided  to  an  employee  as  part  of  a  workplace 
arrangement  using  auto-enrolment,  the  information  referred  to  in  paragraph  1  shall 
be  provided  to  the  employee  promptly  after  the  enrolment  in  the  arrangement 
concerned.’; 

(12) 

Article 34 is amended as follows: 

(a) 

in paragraph 2, the following subparagraph is added: 

‘The  PEPP  provider  or  PEPP  distributor  shall  also  clearly  inform  the  prospective 
PEPP saver that comparative information on the costs and performance of all PEPPs 
is  publicly  available  through  the  register  referred  to  in  Article  13(1),  and  shall 
indicate in a clear and prominent manner the internet link to that register.’; 

(b)  paragraph 3 is replaced by the following: 

‘3.  The requirement to provide advice to a prospective PEPP saver in accordance 
with paragraph 2, first subparagraph, shall not apply in relation to the distribution of 
the Basic PEPP.  

In  case  advice  is  provided  in  relation  to  the  distribution  of  the  Basic  PEPP,  advice 
shall  be  provided  only  upon  request  of  the  PEPP  saver.  The  PEPP  provider  or  the 
PEPP distributor shall provide advice on an independent basis.’; 

(c) 

the following paragraph 4a is inserted: 

‘4a.  By way of derogation from paragraph 4, where advice is provided in relation to 
distribution of the Basic PEPP, the PEPP provider or PEPP distributor shall be under 
no obligation to obtain information on the prospective PEPP saver’s knowledge and 
experience.’; 

(13) 

Article 36(1) is amended as follows: 

(a) 

the second sentence in point (d) is replaced by the following: 

‘If the pension benefit projections are based on economic scenarios, that information 
shall also include a best estimate scenario, a favourable scenario and an unfavourable 
scenario, taking into consideration the specific nature of the PEPP contract;’; 

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

‘(f)   a  breakdown  of  all  costs  incurred,  directly  and  indirectly,  by  the  PEPP  saver 
over the previous 12 months and on a compounded basis since the start of the 
contract  term,  expressed  both  in  monetary  terms  and  as  a  percentage  of 
contributions  on  a  compounded  basis  over  the  previous  12  months  and  since 
the start of the contract term, indicating: 

(i) 

the costs of administration; 

(ii) 

the costs of safekeeping of assets; 

(iii) 

the costs related to portfolio transactions: 

(iv) 

the costs for any capital guarantee and other costs; 

EN 

23 

  EN 

(v) 

an estimation of the impact of the costs on the final PEPP benefits.’; 

(c) 

the following point (m) is added: 

‘(m)  an  indication  that  EIOPA  maintains  a  register  of  all  PEPPs,  allowing  for  a 
comparison  of  cost  and  performance,  and  the  internet  link  to  the  register 
referred to in Article 13(1).’; 

(14) 

Article 38 is replaced by the following:  

‘Article 38 
Information to be given to PEPP savers during the pre-retirement phase and to PEPP 
beneficiaries during the decumulation phase 

In addition to the PEPP Benefit Statement, PEPP providers shall provide each 
1. 
PEPP saver two months before the dates referred to in Article 59(1), points (a) and 
(b), or at the request of the PEPP saver, with information about the upcoming start of 
the decumulation phase, the possible forms of out-payments, including the costs and 
charges associated with each form of out-payment and the applicable tax treatment, 
and  the  possibility  for  the  PEPP  saver  to  modify  the  form  of  out-payments  in 
accordance with Article 59(1). 

The information shall be accompanied by a concise explanatory guide setting out: 

(a) 

(b) 

(c) 

the  main  features,  implications  and  potential  effects  of  each  form  of  out-
payment on the PEPP saver and, where applicable, on the PEPP beneficiaries;  

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

the circumstances and criteria that PEPP savers should take into account when 
assessing  the  suitability  of  the  different  forms  of  out-payment  for  their 
individual situation. 

Where one of the forms  of out-payment offered by the PEPP provider is a variable 
annuity,  the  PEPP  provider  shall  provide  each  PEPP  saver  two  months  before  the 
dates referred to in Article 59(1), points (a) and (b), with projections to illustrate the 
potential variation in the amount of the out-payment over time. 

During the decumulation phase, PEPP providers shall  annually provide PEPP 
2. 
beneficiaries  with  information  about  the  PEPP  benefits  due  and  the  corresponding 
form of out-payments. 

The information shall describe the main factors that could affect the level or duration 
of  retirement  income,  including  investment  and  life-expectancy  risks,  and  shall 
indicate, where applicable, the right to change the form of out-payment. 

Where  the  PEPP  saver  continues  to  make  contributions  or  to  bear  investment  risk 
during the decumulation phase, the PEPP provider shall continue providing the PEPP 
Benefit Statement.’; 

(15) 

the following Article 39a is inserted: 

EN 

24 

  EN 

‘Article 39a 
Information during the term of contract to be provided in case employers contribute to 
a PEPP 

In  addition  to  the  information  referred  to  in  Articles  36  to  39,  where  an  employer 
contributes  to  a  PEPP  in  accordance  with  Article  47,  paragraphs  3  or  4,  the  PEPP 
Benefit  Statement  shall  contain  information  about  the  contributions  paid  by  the 
employer and the PEPP saver into the PEPP, at least over the last 12 months, and on 
an accumulated basis since the beginning of the investment in both the local currency 
and as percentage of cumulated contributions over the given period.’; 

(16) 

Article 41(1) is amended as follows: 

(a) 

the introductory wording is replaced by the following: 

‘PEPP  providers  shall  invest  the  assets  corresponding  to  the  PEPP  in  accordance 
with the ‘prudent person principle’ and in particular in accordance with the following 
principles:’; 

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

‘(b)  within  the  prudent  person  principle,  PEPP  providers  shall  take  into  account 
risks related to and the potential long-term impact of investment decisions on 
ESG factors;’; 

(c) 

point (d) is replaced by the following: 

‘(d) 

the assets shall be predominantly invested on regulated markets as  defined in 
Article 4(1), point (21) of Directive 2014/65/EU, multilateral trading facilities 
(MTFs) as defined in Article 4(1), point (22), of that Directive and organised 
trading facilities (OTFs) as defined in point (23) of that Directive;’; 

(17) 

in Article 42, paragraphs 1, 2 and 3 are replaced by the following: 

‘1. 

PEPP providers may offer different investment options to PEPP savers. 

2. 

The investment options shall include at least one of the following: 

(a)  

the Basic PEPP referred to in Article 45;  

(b)   a tailored PEPP with investment options different from the one referred 

to in Article 45.  

 PEPP  providers  shall  design  investment  options  on  the  basis  of  a  risk-

3. 
mitigation technique within the meaning of Article 46.’; 

(18) 

in Article 43, the wording ‘Having received the relevant information and advice,’ is 
replaced  by  the  wording  ‘Having  received  the  relevant  information  and  advice, 
where requested or required,’; 

(19) 

Article 45 is replaced by the following: 

‘Article 45 
The Basic PEPP 

PEPP providers shall design the Basic PEPP investment option on the basis of 

1. 
a life cycle investment strategy.  

2.  Without prejudice to the investment rules laid down in Article 41, at least 95 % 
of  the  assets  of  the  Basic  PEPP  other  than  cash  shall  be  invested  into  any  of  the 

EN 

25 

  EN 

financial  instruments  referred  to  in  Article  25(4)(a),  points  (i)  to  (iv),  of  Directive 
2014/65/EU.’; 

(20) 

Article 46 is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

‘1.  The  use  of  risk-mitigation  techniques  shall  ensure  that  the  investment 
strategies  for  the  PEPP  are  designed  to  build  up  a  stable  and  adequate  individual 
future  retirement  income  from  the  PEPP  and  to  ensure  a  fair  treatment  of  all 
generations  of  PEPP  savers.  Those  risk-mitigation  techniques  shall  take  into 
consideration the expected remaining duration of the PEPP saver’s or group of PEPP 
savers’  individual  accumulation  phase  and  the  PEPP  saver’s  chosen  decumulation 
option. All risk-mitigation techniques shall be sound, robust and consistent with the 
risk profile of the corresponding investment option.’; 

(b) 

in paragraph 2, point (a) is replaced by the following: 

‘(a) 

the application of a lifecycle investment strategy;’ 

(c) 

the following paragraph 2a is inserted:  

‘2a.  The PEPP provider shall design the life-cycle investment strategy referred to in 
paragraph 2, point (a), in such a way as to ensure that the PEPP savers furthest away 
from the expected end of the accumulation phase invest, to a contractually specified 
extent, in long-term investments which benefit from higher investment returns due to 
their  specific  higher  risks  and  rewards  characteristics,  including  illiquid  or  equity-
type  characteristics.  For  the  PEPP  savers  closest  to  the  expected  end  of  the 
accumulation  phase,  the  PEPP  provider  shall  ensure  that  the  investments  are 
predominantly liquid, of high quality and exhibiting fixed investment returns. 

The  PEPP  provider  shall  specify  average  exposures  to  equity  and  debt  instruments 
whilst  ensuring  compliance  with  Article 41  for  all  potential  sub-portfolios 
corresponding to the phases of the life-cycling.’; 

(d) 

in paragraph 3, the first two subparagraphs are replaced by the following: 

‘In  order  to  ensure  the  consistent  application  of  this  Article,  EIOPA  shall,  after 
consulting  the  other  ESAs,  develop  draft  regulatory  technical  standards  specifying 
the  minimum  qualitative  criteria  that  the  risk-mitigation  techniques  have  to  satisfy, 
taking into account the various types of PEPPs and their specific features, as well as 
the  various  types  of  PEPP  providers  and  the  differences  between  their  prudential 
regime. The criteria shall not impose maximum probabilities of losses  or stochastic 
modelling. 

EIOPA shall submit those draft regulatory technical standards to the Commission by 
[PO= please insert 6 months after entry into force of this Regulation].’; 

(21) 

in Article 47, the following paragraphs 3, 4 and 5 are added: 

‘3.  Without  prejudice  to  national  social  and  labour  law  on  the  organisation  of 
pension  systems  and  the  autonomy  of  social  partners,  including  compulsory 
membership and the outcomes of collective bargaining agreements, and insofar as it 
does  not  interfere  with  the  existing  occupational  pension  schemes,  Member  States 
shall  not  prevent  employers  from  voluntarily  contributing  to  a  PEPP  for  their 
employees that are PEPP savers and who agree to this. 

EN 

26 

  EN 

4.  Without prejudice to national social and labour law regarding the organisation 
of  pension  systems  and  the  autonomy  of  social  partners,  including  compulsory 
membership and the outcomes of collective bargaining agreements, and insofar as it 
does  not  interfere  with  the  existing  occupational  pension  schemes,  Member  States 
may  allow  the  PEPP  to  be  provided  to  an  employee  as  part  of  a  workplace 
arrangement using auto-enrolment. 

In the case the PEPP is provided to an employee as part of a workplace arrangement 
using  auto-enrolment,  the  PEPP  saver  shall  have  the  right  to  opt  out  and  rejoin  in 
accordance  with  the  national  framework  governing  auto-enrolment,  including 
relevant  social  and  labour  law  on  the  organisation  of  pension  systems,  compulsory 
membership and the outcomes of collective bargaining agreements. 

(22) 

the following Article 51a is inserted before Chapter VII: 

‘Article 51a 
Pension tracking systems 

1.  Member States shall ensure that, where pension tracking systems are in place, 
they cover the PEPP accrued retirement entitlements. 

2.  For  the  purposes  of  paragraph  1,  PEPP  providers  and  PEPP  distributors  shall 
transmit to pension tracking systems, where pension tracking systems are in place in 
the  Member  State  where  the  PEPP  is  distributed,,  all  information  necessary  to 
provide  customers  with  a  comprehensive,  reliable  and  up-to-date  overview  of  their 
entitlements. 

3. 
The information referred to in paragraph 2 shall be 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. 
PEPP  providers  shall  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. 
Competent authorities shall monitor and enforce compliance with this Article 
and  take  corrective  measures  where  PEPP  providers  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 37.’; 

(23) 

Chapter VII is amended as follows: 

(a) 

the heading of the Chapter is replaced by the following: 

‘SWITCHING OF PEPP PROVIDERS AND TRANSFER FROM 
AND TO OTHER PERSONAL PENSION PRODUCTS’; 

(b) 

the following Articles 56a and 56b are inserted: 

EN 

27 

  EN 

‘Article 56a 
Switching and transfer rights in case of deregistration 

Without  prejudice  to  any  additional  remedies  that  may  be  available  under  national 
law,  where  a  PEPP  is  deregistered  in  accordance  with  Article  8,  paragraphs  1,  the 
PEPP  savers  and  beneficiaries  shall  have  the  right  to  switch  to  another  PEPP 
provider  or  to  transfer  the  accumulated  capital  to  another  personal  pension  product 
without delay and free of charge.  

Article 56b 
Transfers from other personal pension products 

1.  Member States shall allow transfers from other personal pension products to a 
PEPP.  

2.  Member States shall ensure that the transfers referred to in paragraph 1 are not 
subject to penalties, fees or any other administrative requirement by the provider of 
the personal pension product that would make the transfer more costly than transfers 
between two personal pension products that are not PEPPs.’; 

(24) 

in Article 57, the following paragraph 3 is added: 

In  the  case  of  PEPPs  provided  to  an  employee  as  part  of  a  workplace 
‘3. 
arrangement using auto-enrolment, the provisions referred to in this Chapter shall be 
without  prejudice  to  the  right  of  an  employer  to  determine  default  decumulation 
pathways where this is provided for under the law of the Member State concerned.’; 

(25) 

in Article 60(1), the introductory wording is replaced by the following: 

‘1.  At the start of the decumulation phase, the PEPP provider shall offer the PEPP 
saver personal retirement planning on the sustainable use of the capital accumulated 
in the PEPP sub-accounts, taking into account at least;’; 

(26) 

in Article 63(1), point (a) is replaced by the following: 

‘(a) 

the  competent  authorities  are  satisfied  that  there  are  reasonable  grounds  to 
believe  that  the  PEPP  gives  rise  to  significant  or  reiterated  saver’s  protection 
concerns,  consistently  fails  to  offer  value  for  money  or  poses  a  risk  to  the 
orderly functioning and integrity of financial markets or the stability of whole 
or part of the financial system within at least one Member State;’; 

(27) 

in Article 64(1), the first sentence is replaced by the following: 

‘EIOPA shall perform a facilitation and coordination role, including by setting up a 
collaboration platform in accordance with Article 65a in relation to action taken by 
competent authorities in accordance with Article 63.’; 

(28) 

in Article 65(3), first subparagraph, point (a), the following text is added: 

‘or the consistent failure to offer value for money;’; 

(29) 

the following Article 65a is inserted: 

‘Article 65a 
Collaboration platforms 

EIOPA shall perform a facilitation and coordination role, including in the case 
1. 
of justified concerns about potential harm to the interests of PEPP savers and PEPP 

EN 

28 

  EN 

beneficiaries.  It  shall,  on  its  own  initiative  or  at  the  request  of  one  or  more  of  the 
PEPP  competent  authorities,  set  up  and  coordinate  a  collaboration  platform,  to 
strengthen  the  exchange  of  information  and  to  enhance  collaboration  between 
competent authorities. 

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. 

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

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.  Where  EIOPA  identifies  a  need  to  investigate  possible  detriment  to  the 
interests  of  PEPP  savers  or  beneficiaries  EIOPA  may  call  for  the  home  PEPP 
competent  authority  to  carry  out  an  on-site  inspection.  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.’; 

(30) 

in Article 73(1), the first sentence is replaced by the following: 

‘By [PO = please insert the date corresponding to five years after the application date 
of this Regulation], and every five years thereafter, the Commission shall carry out 
an  evaluation  of  this  Regulation,  and  after  consulting  EIOPA  and  the  other  ESAs 
where appropriate, present a report on the main findings to the European Parliament 
and the Council.’. 

Article 2 
Repeal 

In the Commission Delegated Regulation (EU) 2021/473, Article 13, Article 14, paragraphs 2 
and 3, and Article 15 are repealed. 

Article 3 
Entry into force and date of application  

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

This  Regulation  shall  apply  from  [PO  =  please  insert  1  year  after  entry  into  force  of  this 
Regulation]. 

EN 

29 

  EN 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

30 

  EN 

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 ............................................................................................ 3 

1.4. 

1.5. 

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

Grounds for the proposal/initiative .............................................................................. 4 

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 ............................................................ 4 

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. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

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 ............................... 19 

3.2.3.1. Appropriations from voted budget .............................................................................. 19 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 19 

3.2.3.3.  Total appropriations ................................................................................................... 19 

3.2.4.  Estimated requirements of human resources.............................................................. 20 

3.2.4.1.  Financed from voted budget....................................................................................... 20 

3.2.4.2.  Financed from external assigned revenues ................................................................ 20 

3.2.4.3.  Total requirements of human resources ..................................................................... 21 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 22 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 22 

3.2.7.  Third-party contributions ........................................................................................... 22 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 23 

DIGITAL DIMENSIONS .......................................................................................... 24 

Requirements of digital relevance .............................................................................. 24 

Data ............................................................................................................................ 25 

Digital solutions ......................................................................................................... 26 

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 an amending Regulation  (EU) 2019/1238 on a pan European Personal 
Pension Product (PEPP) 

1.2. 

Policy area(s) concerned  

Capital  Markets  Union,  Savings  and  Investments  Union,  Pension  Package, 
Supplementary Pensions 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The  general  objectives  pursued  by  this  legislative  proposal  amending  Regulation 
(EU) 2019/1238 are to increase citizens participation in supplementary pensions, to 
ensure  their  adequate  income  in  retirement  and  to  enhance  the  capacity  of  pension 
providers to direct households’ savings into productive and innovative investments. 

By  reducing  administrative  burden  of  rules  set  out  in  Regulation  (EU)  2019/1238 
associated  with  the  initial  design  of  PEPPs,  competition  can  emerge,  and 
transparency can contribute to improved commercial appetite.  

1.3.2. 

Specific objective(s) 

The specific objectives of the proposed amendments to Regulation (EU) 2019/1238 

are the following: 

-  Ensuring  that  cost  efficient  pension  products  can  emerge  by  deleting  restrictive 
design  features  of  the  PEPP,  thereby  allowing  for  more  market  competition,  while 
allowing long term investments in private markets. 

- Ensuring higher transparency on fees and costs in order to create the conditions to 
deliver better returns and increase citizens’ perceptions of supplementary pensions as 
a valuable long-term investment for retirement.  

-  Reducing  regulatory  burden  and  easing  commercial  strain  by  removing  the 
requirement to  offer compartments  in two Member States  at  minimum,  by deleting 
the requirement to offer the PEPP at or under the fixed fee threshold of 1% and by 
deleting the requirement to offer a Basic PEPP. 

-  Reducing  regulatory  fragmentation  to  encourage  a  larger  offer  of  third  pillar 

pension products subject to aligned European rules.  

1.3.3.  Expected result(s) and impact 

-  More  offering  of  cost  effective  personal  pension  products  and  more  retirement 
savings by citizens. 

- More efficient management of retirement savings and supervision thereof.  

- Promotion of scale and competition forces 

- Streamlining explicit investment barriers for all private pension providers 

EN 

3 

  EN 

1.3.4. 

Indicators of performance 

While the PEPP Regulation has been in force since 2019, so far only two providers 
have offered a PEPP. The targeted consultation revealed that market participants stay 
away from offering the product because the current 1 % fee cap is perceived as too 
limiting compared to national products that are in place and that requirements such as 
the  obligation  to  offer  the  PEPP  in  more  than  one  Member  State  hinder  its 
commercial launch.  

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

- an increase in  number  of registered  PEPP  as  well as  in  the number of  passported 
PEPPs; 

- an increase in the total number of PEPP savers, both private and occupational; 

- strong value for money provided by PEPPs as per supervisory evaluation; 

- higher long term retail savings channelled into capital markets.  

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action33  

☑︎ 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  Regulation  amending  Regulation 
(EU)  2019/1238.  This  amending  Regulation  will  start  applying  12  months  after  its 
entry into force. 

As  specified  in  Art  73  of  Regulation  (EU)  2019/1238,  the  Commission  shall,  five 
years  after  the  application  date  of  this  amending  Regulation,  and  every  five  years 
thereafter,  carry  out  an  evaluation  of  Regulation  (EU)  2019/1238,  and  after 
consulting EIOPA and the other ESAs where appropriate, present a report including 
the main findings to the European Parliament and the Council.  

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 Regulation of the pan-European personal pension product (PEPP) is established 
at  EU  level  since  2019,  because  only  Union  action  can  set  a  common  regulatory 
framework for PEPP providers that benefit from passporting. Amending the features 
of the PEPP can only be achieved at EU level, through an amending Regulation.  

33 

EN 

4 

  EN 

 
 
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 instrument 

Not applicable 

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

redeployment 

The tasks of the European Insurance and Occupational Pensions Authority (EIOPA) 
in  relation  to  the  registration  process  are  already  established.  The  workload 
associated with the targeted adjustments to the application process or to the scope of 
the existing register should remain limited and is expected to be spread over time as 
the number of PEPPs grows. EIOPA should be able to manage these additional tasks 
within its existing resources. 

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

redeployment 

Not applicable 

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. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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. 

Heading of 
multiannual 
financial 
framework 

Budget line 

Type of 
expenditure 

Contribution  

Number  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non-
diff.1 

from 
EFTA 
countries2 

from 
candidate 
countries 
and 
potential 
candidates3 

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 

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

Contribution  

from 
candidate 
countries 
and 
potential 
candidates 

from 
other 
third 
countries 

other assigned 
revenue  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

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 

1 
2 
3 

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 

Budget line 

Commitments 

Payments 

Commitments 

(1a) 

(2a) 

(1b) 

EN 

9 

0.000 

0.000 

0.000 

EN 

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

(3) 

Payments 

(2b) 

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 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

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

TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Heading of multiannual financial  
framework  

Number 

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 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

(1a) 

(2a) 

(1b) 

EN 

10 

0.000 

0.000 

0.000 

EN 

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

(3) 

Payments 

(2b) 

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 

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  

Commitments 

Payments 

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

(4) 

(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 

EN 

11 

EN 

 
 
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

=4+6 

=5+6 

•  TOTAL  operational  appropriations 
operational headings) 

(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 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

0.000 

Year 

2026 

0.000 

Year 

2027 

0.000 

0.000 

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: <…….> 

Appropriations  

DG: <…….> 

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

 Human resources  
 Other administrative expenditure  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

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 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
MFF 2021-
2027 

0.000 

0.000 

0.000 

TOTAL 
MFF 2021-
2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL DG <…….> 

Appropriations  

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) 

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 

of the multiannual financial framework  

Payments 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.1.2.  Appropriations from external assigned revenues 

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 

Commitments 

=1a+1b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

13 

EN 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
for DG <…….> 

Payments 

=2a+2b+3 

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  

Commitments 

Payments 

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

TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

Heading of multiannual financial framework  

Number 

(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 

DG: <…….> 

Year 

Year 

Year 

Year 

TOTAL MFF 

EN 

14 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
2024 

2025 

2026 

2027 

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 

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  

Commitments 

Payments 

(4) 

(5) 

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 

15 

EN 

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

TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

(6) 

=4+6 

=5+6 

•  TOTAL  operational  appropriations 
operational headings) 

(all 

Commitments 

Payments 

•  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 

(4) 

(5) 

(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 

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  

EUR million (to three decimal places) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

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 

TOTAL 
MFF 2021-
2027 

0.000 

0.000 

0.000 

EN 

16 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

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 

TOTAL 
MFF 2021-
2027 

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 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

EUR million (to three decimal places) 

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) 

Indicate 
objectives and 
outputs  

 

Type37 

Avera
ge 
cost 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

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

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

37 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 

EN 

17 

EN 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 138… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

38 

As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

18 

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 

19 

  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 

20 

  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 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL VOTED APPROPRIATIONS                                       +                                                                        

Year 

Year 

Year 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

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 

EN 

N/A 

21 

  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 

22 

  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/initiative39 

Year 2024 

Year 2025  Year 2026 

Year 2027 

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

Note applicable 

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

39 

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 

23 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EIOPA, 
NCA, PEPP 
providers 

Transmissi
on of 
information 

4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

Reference 
to the 
requireme
nt 

Article 6 

Actor 
affected or 
concerned by 
the 
requirement 

NCAs, 
EIOPA, 
PEPP 
provider 

Requirement description 

Registration information to 
be made available- in the 
existing register. PEPP 
providers have to 
demonstrate their ability to 
provide value for money as 
part of the registration 
process 

Article 13  The scope of the existing 

central public register 
maintained by EIOPA is 
extended to include 
historical data on costs, 
performance, and the 
summary risk indicator. 

Article 
51a 

PEPP providers and 
distributors could transmit 
to pension tracking systems, 
in a standardised and 
interoperable format, all 
information necessary to 
provide customers with a 
comprehensive, reliable and 
up-to-date overview of their 
entitlements. 

Article 65  EIOPA can, under certain 

conditions, set up 
collaborative platforms to 
strengthen the exchange of 
information and to enhance 
collaboration between the 
relevant competent 
authorities – similar to the 
collaborative platform set-
up in the Directive (EU) 

PEPP 
providers, 
pension 
tracking 
system 
providers, 
NCAs 

EIOPA, 
NCAs 

High level 
processes 

Category 

Transmissi
on of 
information 

 Manage 
registry 

Manage 
registry 

Publish 

Monitor 

Transmissi
on of 
information 

Data  

Digital 
solution 

Digital 
Public 
service 

Data  

Digital 
solution 

Digital 
Public 
service 

Data  

Digital 
solution 

Digital 
Public 
service 

Establish a 
Digital 
Public 
Service; 

Monitor 

Data  

Digital 
solution 

Digital 
Public 
service 

EN 

24 

  EN 

 
 
2016/2341 

4.2. 

Data 

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

Type of data 

Reference(s) 
requirement 

to 

the 

Standard  and/or  specification 
(if applicable) 

Registration 
information  on 
capacity  to  provide  value  for 
money 

Article 6  

As defined by EIOPA 

Registration  of  data  on  cost, 
performance, risk indicators 

Article 13 

As defined by EIOPA 

information 

Up-to-date 
on 
savers’ entitlements to be made 
pension 
available 
in 
tracking  system,  where 
this 
exists.  

the 

Article 51a 

As defined by the NCAs 

of 

Exchange 
supervisory 
between authorities 

relevant 
information 

Article 65 

As  defined  by  the  NCAs/ 
EIOPA 

Data flows 

Type of data 

Registration 
information 

Registration 
information 

Registration 
of  data  on 
cost, 
performance, 
risk indicators 

Reference(s) 
to 
the 
requirement(s
) 

Actor  who  provides 
the data 

Actor 
receives 
data 

who 
the 

Trigger  for  the  data 
exchange 

Freque
ncy  (if 
applica
ble) 

Article 6  

PEPP provider 

NCA 

Request 
registration 

for 

// 

Article 6  

NCA 

EIOPA 

Decision 
registration 

for 

// 

Article 13 

PEPP provider 

NCA 

As  established  by 
EIOPA 

// 

EN 

25 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
Registration 
of  data  on 
cost, 
performance, 
risk indicators 

Up-to-date 
information 
on 
entitlements  

savers’ 

Supervisory 
information 

Article 13 

NCA 

EIOPA 

As  established  by 
EIOPA 

// 

Article 51 

PEPP 
provider/distributo
r 

Article 65 

NCAs 

pension 
tracking 
system 
provider 

EIOPA 

at  defined  by  the 
NCAs 

// 

As  established  by 
NCAs/EIOPA 

// 

4.3. 

Digital solutions 

Digital 
solution 

Reference(s) 
to 
the 
requirement
(s) 

Main 
mandated 
functionalitie
s 

Responsib
le body 

How 
is 
accessibili
ty  catered 
for? 

is 

How 
reusabilit
y 
considere
d? 

Use  of  AI 
technologi
(if 
es 
applicable
) 

EIOPA 

Publicly 
available 

// 

be 

To 
defined 
by 
EIOPA 

NCAs 

To 
be 
defined by 
NCAs 

be 

To 
defined 
by NCAs 

// 

Central 
public 
registry 

Article 
Article 13 

6; 

Article 51a 

Updating 
of  existing 
pension 
tracking 
system 

Registration 
data, 
cost, 
performance, 
risk 
indicators  to 
be 
incorporated 
in the Central 
public 
register 
maintained 
by  EIOPA  – 
already 
existing 

to 

PEPP 
providers and 
distributors 
could 
transmit 
pension 
tracking 
systems,  in  a 
standardised 
and 
interoperable 
all 
format, 

EN 

26 

  EN 

 
 
a 

information 
necessary  to 
provide 
customers 
with 
comprehensi
ve, 
and 
date 
overview  of 
their 
entitlements. 

reliable 
up-to-

EIOPA 

To 
be 
defined by 
EIOPA 

// 

be 

To 
defined 
by 
EIOPA 

Article 65 

Collaborati
ve 
platforms 

to 

EIOPA  can, 
under  certain 
conditions, 
up 
set 
collaborative 
platforms 
to 
strengthen 
the  exchange 
of 
information 
and 
enhance 
collaboration 
the 
between 
relevant 
competent 
authorities  – 
similar to  the 
collaborative 
platform  set-
up 
the 
in 
Directive 
(EU) 
2016/2341 

Central public registry 

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

Explanation on how it aligns 

AI Act 

Not applicable 

EU Cybersecurity framework 

to  Regulation 

Without  prejudice 
(EU) 
2016/679,  Member  States  shall  ensure  the 
and 
security, 
confidentiality  of  the  data  collected  and 

authenticity 

integrity, 

EN 

27 

  EN 

 
 
eIDAS 

Others 

stored for the purpose of this Directive.  

To be further detailed by EIOPA 

To be further detailed 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 

eIDAS 

Others 

Collaborative platforms 

to  Regulation 

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

authenticity 

integrity, 

To be further detailed by NCAs 

// 

// 

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

Explanation on how it aligns 

AI Act 

Not applicable 

EU Cybersecurity framework 

eIDAS 

Others 

EN 

to  Regulation 

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

authenticity 

integrity, 

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 

Central 
register 

public 

Pension 
system 

tracking 

Collaborative 
platforms 

Description 

Reference(s) 
requirement(s) 

to 

the 

Other interoperability 
solution(s) 

Articles 6, 13 

// 

Article 51a 

Article 65 

// 

// 

Registration  of  value 
for  money  delivery 
capacity; 
data  on 
costs,  performance, 
and the summary risk 
indicator. 

Up-to-date 
information 
savers’ entitlements 

on 

be 

created, 
To 
and 
maintained 
updated  regularly,  as 
well as made publicly 
available 

4.5.  Measures to support digital implementation 

Not applicable 

EN 

29 

  EN