The Institutions for Occupational Retirement Provision Directive''
2016/2341is a
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
Directive designed to create an internal market for occupational retirement provision. It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits cross-border management of pension plans.
The original Directive was released in 2003, and was replaced in 2016.
2003 Directive contents
The original Directive 2003/41/EC contained articles on the following issues.
*art 2, scope
*art 3, application to social security schemes, covered by Regulations (EEC) No 1408/71 and (EEC) No 574/72, insofar as they run non-compulsory occupational plans
*art 4, member states can apply this to insurance companies that do retirement, which are already covered by Directive 2002/83/EC, in which case they must ring fence their assets.
*art 5, exemption for schemes under 100 members
*art 6, definitions
*art 7, institutions activities should be limited to retirement benefits, not other things
*art 8, there must be legal separation between sponsoring institutions and retirement funds so assets are safeguarded on insolvency
*art 9, conditions of operation are that institutions should be in a national register, run by people with professional qualifications, members sufficiently informed, etc.
*art 10, annual accounts and reports from every institution
*art 11, members and beneficiaries must receive annual accounts and reports on request and changes in rules, levels of benefits, etc.
*art 12, each 3 years every fund should produce a statement of investment policy principles
*art 13, authorities should be able to get information from funds
*art 14, authorities should ensure proper accounting and internal controls in each institution
*art 15, technical provisions, biometric risk…
*art 16, sufficient assets to fund technical provisions
*art 17, extra buffer if a fund insures itself
*art 18, investment rules, including "In the case of a potential
conflict of interest
A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...
, the institution, or the entity which manages its portfolio, shall ensure that the investment is made in the sole interest of members and beneficiaries".
*art 19, no restrictions on overseas investment management by member states
*art 20, cross border activities
*art 21, co-operation between member states and the Commission
*art 22, implementation
*art 23, entry into force
*art 24, addressed to member states
Revision
On 27 March 2014, the Commission released a proposed text for revising the Directive, and to recast it consolidating the other pension related Directives. In addition to the existing general provisions that would form Title I, a new IORP Directive would include new titles covering (II) quantitative requirements on where money is invested, (III) minimum standards on retirement fund governance and investment outsourcing, (IV) minimum information rights for retirement fund members, and (V) standards for prudential supervision by member state authorities.
[See the Commission Proposal document]
2014/0091 (COD)
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See also
*EU law
European Union law is a system of rules operating within the member states of the European Union (EU). Since the founding of the European Coal and Steel Community following World War II, the EU has developed the aim to "promote peace, its val ...
*European labour law
European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition for job-creatin ...
*UK labour law
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum charter of employment rights, which are found in Acts of Parliament, Regulations, common law and equit ...
Notes
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References
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External links
EU summary page
United Kingdom labour law
European Union directives
2008 in law
2008 in the European Union
European Union employment directives
2008 in labor relations