Member States will have two years to transpose IORP II into their national law from 20 days after its publication in the Official Journal of the EU (publication is expected to be in early 2017). Who we work with. The recast directive places greater emphasis on effective corporate governance for pension scheme trustees. Implementing and delegated acts. Sweden’s IORP II implementation bill (2019) allows life insurance companies and workplaces pension savings institutions to convert to occupational pension companies governed by IORP II. IORP 1 included one sub-paragraph requiring adequate internal controls for pension schemes. IORP II is designed to raise the minimum standards within IORP I (2003), ... the UK, Germany, the Netherlands and Belgium – please click here1. The regulatory developments run in parallel with the ever-pressing need for trustees to consider the potential impact of the climate crisis on their investments. The extent (if at all) to which the UK will need to comply with IORP II is unlikely to be known until the terms of Brexit become much clearer. Austria. Implementation by EU countries. 12 I actuarial association of europe PROPOSED REVISION OF IORP DIRECTIVE Commission Proposal: IORP II The European Commission … For cross-border purposes only, an archetype II IORP could suffice, or so seems to be the reasoning of the Dutch government. As with any EU issue, the referendum outcome is a major factor. So IORP II was introduced to encourage more cross-border schemes by harmonising pension scheme investment rules on an EU member state basis, simple example – you can acquire residential property in an Irish occupational pension scheme but you can’t in a UK one. The requirements apply to local regulators, who then specify the details required in their jurisdiction. implementation of the Institutions for Occupational Retirement Provisions - the IORP II Directive. Amendments. Institutional Investor" is defined under SRD II as an IORP (i.e. The revised EU Directive on Institutions for Occupational Retirement Provision (IORP II) came into force earlier this year. majority of UK IORPs have assets of less than £20m). The European Insurance and Occupational Pensions Authority (EIOPA) has issued four opinions in order to assist National Competent Authorities (NCAs) with implementing the IORP II Directive. Governance. However, trustees need not take any actions until the Pensions Regulator (TPR) has issued a governance code of practice which will be developed during 2019. Modernised rules for EU pension funds: IORP II Directive. The rules are proposed to take effect on 1 May 2019 and apply to firms that only offer occupational pension insurance. a pension scheme) coming within the scope of IORP II, unless the Member State disapplied some of the provisions of IORP II for smaller schemes. EIOPA-BoS-18/328 13 November 2018 Implementation of IORP II: Report on the Pension Benefit Statement: guidance and principles based on current practices EIOPA – Westhafen Tower, Westhafenplatz 1 - 60327 Frankfurt – Germany - Tel. Monitoring implementation and enforcement of Directive 2016/2341/EU. Taking these points into account, we believe that, if the IORP Directive were to undergo material changes, the implementation timeframe would need to be significantly longer than the five year period adopted for Solvency II in the insurance industry. Institutions for occupational retirement provision (IORP) - Directive 2003/41/EC. IORP I (2003) will then be repealed with effect from 1 January 2017. This follows the implementation of the IORP II Directive into UK law under the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018 (the "Governance Regulations"). Law details. The IORP is due to be implemented in the UK by 12 January 2019. This instrument will implement those articles in IORP II which relate to workplace pension scheme governance into UK law. Commissioner Barnier responded to all the criticism in 2013 to bring forward a proposal which would not include quantitative measures. Information about Directive 2003/41/EC including date of entry into force and links to summary and consolidated version. PensionsEurope shares the best practices on the implementation of the IORP II Directive and you can read our further remarks about the IORP II Directive here. Whether or not the new IORP Directive will be implemented in the UK is clearly uncertain following the outcome of the recent EU referendum and will depend upon the timing and terms of the UK’s exit. In this instance we focus on the interpretation in the Netherlands. + 49 69-951119-19; email: info@eiopa.europa.eu site: https://eiopa.europa.eu/ ©EIOPA 2018 The opposition was joined by employer organisations, unions and the IORP industry. Implementation of IORP and Brexit. The IORP II Directive does not impose any quantitative capital requirement, considered unrealistic from a practical point of view, but it does aim to harmonize the risk assessment, members’ publications, and investment principles in social and responsible activities at European level. It allows national governments considerable latitude how to embed these into national legislation. IORP II is set to have a positive impact on Austrian Pensionskassen as the country has done away with quantitative caps on how much funds can invest in different asset classes. Q1. The next stages are as follows: > Once the Directive has been enacted, states must transpose its provisions into national law by 31 December 2016. UK will take a very “light touch” approach to IORP II implementation…? IORP II and Brexit . Skip to main content. The Governance Regulations build on the previous requirement for trustees to maintain adequate internal controls. Belgium implemented the Directive by adopting a new legal framework. Implementation. These regulations require, amongst other things, the Regulator to deliver a Code in order that the UK is compliant with the IORP II governance requirements (see Pensions Bulletin 2018/42). IORP II sets several new minimum standards for IORPs, including new rules for the governance and risk assessment of IORPs. “IORP II”) must be transposed by the UK on 13 January 2019. To this end Codes of Practice 9 (internal controls) and 13 (defined contribution) will be reviewed first, as will content from Codes of Practice 14 (public service schemes) and 15 (master trusts). AMX aims to guide institutions thorough this transition, helping them transform their business by reducing costs , driving operational efficiency and improving fund governance. IORP II is a ‘recast’, or revision, of the ‘IORP 1’ Directive 2. Legal Commentary on the Pension Funds Directive [dir. (15) Member States should take into account the need to protect the pension rights of workers temporarily sent to work in another Member State. What next? The IORP II Directive sets common standards by ensuring the soundness of occupational pensions and better protecting pension scheme members and their beneficiaries, by means among others: new governance requirements, new rules on IORPs’ own risk assessment, new requirements to use a depositary and enhanced powers for supervisors. of SIP updates following SRD II, as well as a new requirement for trustees to publish annual implementation statements setting out how trustee ESG and stewardship policies have been followed during the year. G9 - IORP II outcome - joint statement - November 2016.pdf. Home - European Commission. These Regulations meet the UK’s obligation to implement the IORP. The European Commission’s Directorate-General for Financial Stability and Capital Markets (DG FISMA) has launched an infringement procedure against 17 EU member states for incorrect implementation of the IORP II Directive. Belgium. As part of the Year in Review, Year to Come series, our UK Pensions team has contributed a UK Pensions Year in Review and Year to Come publication. The implementation of the IORP II directive offers a reinforcement of the governance practice, but also leads to various dilemmas. With a target implementation date that is close to when the UK is expected to leave the EU, it is currently unclear how IORP II will be enacted into UK legislation. Separately, the IORP II implementation bill in Sweden will allow insurance companies and workplace pension savings institutions to be converted into occupational pension companies, as long as they meet certain requirements. IORP II – national implementation . An Act of 27 October 2006 51 on the supervision of IORPs defines the legal structure, the organisation and the functioning of a new special-purpose vehicle. No. Interaction with IORP II. You are here: Home; Publications; Occupational retirement provisions directive (IORP 2) - transposition status; Occupational retirement provisions directive (IORP 2) - transposition status. In addition, the UK has brought into force new regulations designed to implement the governance and cross-border strands of IORP II. Some of the requirements of IORP II are already met by existing UK law and regulatory guidance. Interestingly, Ireland transposed SRD II before IORP II. " Scope, Guiding Principle, and Objectives. + 49 69-951119-20; Fax. First published on. Questions such as: ‘how to set up key functions according to the nature and complexity of the fund’ or ‘what can I expect from the outsourcing of key functions’ have yet to be answered. Where the sponsoring undertaking and the IORP are located in the same Member State, the mere fact that members or beneficiaries of a pension scheme have their residence in another Member State does not in itself constitute a cross-border activity. IORP II Directive Provisional Implementation Roadmap. The outcome of the UK assessment resulted in all UK schemes with fewer than 15 members being excluded from IORP II and the implementation made voluntary for schemes with 15-99 members following its cost benefit analysis. The extent (if at all) to which the UK will need to comply with IORP II is unlikely to be known until the terms of Brexit become much clearer. Strictly speaking, the UK will be obliged to work towards implementation of IORP II as long as we remain a member of the EU. PensionsEurope welcomes the modernised rules for EU pension funds - September 2016.pdf. en ... Search. pension countries: UK, Germany, The Netherlands. If you would like to know more about the new directive, please contact your Davy adviser for more information. This article reflects our current understanding of the position. transpose the directive into UK law. The Commission works with … On 27 March 2014, the Commission released a proposed text for revising the Directive, and to recast it consolidating the other pension related Directives. IORP II will replace the provisions of the original IORP Directive (2003/41), which came into force on 23 September 2003 and was implemented into Irish law on 21 September 2005, through amendments to the Pensions Act 1990 (the Pensions Act) and related statutory instruments. art 22, implementation; art 23, entry into force; art 24, addressed to member states ; Revision. In this publication we have summarised the key legal developments in the Pensions space for 2019 and looked forward in predicting likely themes for 2020. Ireland has indeed left it late to act on IORP II (the deadline for implementation was actually in mid-January) but it seems the government is now ready to act. Aon Italy estimates the implementation of IORP II could cost Italian pension funds about €100,000 each, depending on their specific situation. The latest Directive (also referred to as “IORP II”) was nearly three years in the making, with the EU Commission’s initial proposal for a new Directive having been published in March 2014. The Governance Regulations focus on requirements to establish an effective system of governance. Amending and supplementary acts. for implementing IORP II in the UK. IORP II introduces a range of requirements relating to: governance; risk management, and; member communication; regarding occupational retirement plan arrangements in the European Union.