The European Insurance and Occupational Pensions Authority (EIOPA) submitted technical input requested by the European Commission to support the development of supplementary pensions under the Savings and Investments Union strategy. The package proposes targeted changes to the EU regulatory and supervisory framework for occupational and personal supplementary pensions, with a focus on value for money, auto-enrolment and enhanced supervision. For the review of the IORP II Directive, the proposals seek to address implementation challenges of more stringent prudential provisions in some Member States, introduce a more risk-based approach to the Prudent Person Rule to foster investment opportunities in alternative assets, clarify scope and definitions to support fair access to pension savings, and strengthen supervision through a clearer framework for supervisory powers and operational and financial independence alongside an enhanced supervisory review process integrated with the risk assessment framework. For the PEPP Regulation, EIOPA proposes a clearer EU-wide label, including renaming the basic PEPP with a simpler name such as “EuroPension”, and simplifying product features by replacing the current 1% cost cap with an assessment of costs weighed against benefits and returns, introducing simplified advice, removing mandatory sub-accounts, and making the product truly cross-border. Further proposals cover changes intended to achieve scale, reduce costs and improve returns, and a simplified registration and supervision framework capable of monitoring the label. EIOPA also recommends using occupational pensions within the IORP II scope or workplace-offered PEPPs as default options for auto-enrolment, and developing pension transparency tools through horizontal disclosure, national pension tracking systems linked to the European Pension Tracking System, and minimum disclosure requirements in both IORP II and PEPP rules that address information gaps in the decumulation phase.
European Insurance and Occupational Pensions Authority 2025-09-08
European Insurance and Occupational Pensions Authority submits Commission input proposing IORP II and PEPP reforms including a EuroPension label and auto-enrolment
The European Insurance and Occupational Pensions Authority (EIOPA) advised the European Commission on enhancing supplementary pensions under the Savings and Investments Union strategy. Key proposals include regulatory changes for occupational and personal pensions, focusing on value for money, auto-enrolment, and enhanced supervision. EIOPA also suggests a clearer EU-wide label for the Pan-European Personal Pension Product (PEPP), simplifying product features, and improving transparency and disclosure requirements.