Strengthening of the framework for occupational retirement provision

It affects workers, retirees, and pension savers in occupational pension schemes, as well as employers sponsoring such schemes and institutions managing workplace retirement savings.

• Requires authorisation, prudential assessment, and business plans for occupational pension institutions.
• Strengthens governance, fit-and-proper rules, conflict management, internal audit, and compliance functions.
• Expands information duties, pension benefit statements, pension tracking data, complaints handling, and dispute resolution.
• Allows more risk-based investment flexibility while adding stress testing and supervisory dialogue.

Transitional law

IORPs already registered or authorised before the new authorisation rules do not need to seek a new authorisation.

• Directive (EU) 2016/2341 (32016L2341)
  • entire act: replaces terminology throughout the Directive
  • art. 2: amends scope provisions for authorised entities operating IORPs
  • art. 3: replaces Article 3 on IORPs operating social security schemes
  • art. 4: replaces Article 4 on optional application
  • art. 5: amends title and deletes second paragraph
  • art. 6: amends definitions and adds new points 20 to 22
  • art. 7: replaces second paragraph on ring-fencing personal pension provision
  • art. 8a: inserts right of establishment and freedom to provide services
  • art. 9: amends authorisation procedure and inserts paragraph 1a
  • art. 9a: inserts rules on multi-sponsor IORPs
  • art. 10: adds financial resources requirement and EIOPA guidelines mandate
  • art. 11: amends cross-border activity procedure and supervision rules
  • art. 11a: inserts rules on changes in notified information
  • art. 12: amends cross-border transfer information, approval and notification rules
  • art. 12a: inserts domestic transfer procedures
  • art. 13: replaces paragraphs 1 and 2 on liabilities and technical provisions
  • art. 14: amends underfunding recovery rules and deletes paragraph 3
  • art. 16: amends available solvency margin provisions
  • art. 17: adds delegated power to amend numbers and percentage values
  • art. 18a: inserts internal stress testing requirements
  • art. 19: amends investment rules and deletes paragraphs 7 and 8
  • art. 21: amends governance requirements and adds paragraphs 7 to 10
  • art. 22: amends fit and proper requirements and notifications
  • art. 23: adds remuneration policy requirements
  • art. 25: amends risk-management system wording
  • art. 26: replaces Article 26 on internal audit function
  • art. 28: adds own-risk assessment policy and additional assessment elements
  • art. 30: adds investment policy statement requirements
  • art. 31: amends outsourcing rules and deletes paragraph 7
  • art. 33: replaces paragraphs 1 to 3 on depositaries
  • art. 34: replaces Article 34 on safekeeping and depositary liability
  • art. 35: replaces paragraph 1 on depositary oversight duties
  • art. Title IV heading: replaces heading of Title IV
  • art. 36: amends information obligations and adds EIOPA guidelines mandate
  • art. 37: amends general information on past investment performance
  • art. 37a: inserts pension tracking systems requirements
  • art. 38: amends Pension Benefit Statement requirements and adds regulatory standards mandate
  • art. 39: amends Pension Benefit Statement content requirements
  • art. 40: amends information on assumptions for projections and annuities
  • art. 41: amends information for prospective members
  • art. 41a: inserts information duties for underperformance
  • art. 42: replaces Article 42 on pre-retirement phase information
  • art. 43: amends information for beneficiaries during pay-out phase
  • art. 44a: inserts duty of care
  • art. 44b: inserts rules on appropriate scheme structure and implementation
  • art. 44c: inserts complaints-handling requirements
  • art. 44d: inserts out-of-court redress requirements
  • art. Title V heading: replaces heading of Title V
  • art. Chapter 1 heading: replaces heading of Title V Chapter 1
  • art. 45: replaces Article 45 on supervisory powers, resources and objective
  • art. 45a: inserts competent authorities designation and resources rules
  • art. 46: amends scope of supervision
  • art. 47: amends general principles of supervision
  • art. 48: amends supervisory powers and sanctions provisions
  • art. 49: amends supervisory review process and adds supervisory dialogue
  • art. 49a: inserts regular supervisory dialogue requirements
  • art. 49b: inserts withdrawal of authorisation rules
  • art. 50: amends reporting and information powers
  • art. 50a: inserts supervision of outsourced functions and activities
  • art. 51: amends transparency and publication requirements for supervisors and schemes regulations.