EUROPEAN PENSIONS FUNDS
CONGRESS
Towards Pan-European Pension Vehicles
– Is Europe delivering the right regulation for
promoting or facilitating cross-border
provision of workplace pensions?
Anne Maher
Chief Executive
The Pensions Board
Frankfurt
15 November 2006
Agenda
 Progress toward Pan-European Pensions
 Is EU Pensions regulation delivering?
 What else might be done?
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Progress
Legal
 EU aim to achieve Single Market for pensions
 EU Communication on “The Elimination of tax obstacles to
cross-border provision of occupational pensions” (April
2001)
 EU Directive 2003/41/EC on “the activities and supervision
of Institutions for Occupational Retirement Provision”
known as the “Pensions Directive” (September 2003)
 Pensions Directive was to be implemented into Member
State legislation by 23 September 2005
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Progress
EU Pensions Directive Principles
 Sets framework for pension scheme supervision
 Effectively sets common minimum level of supervision
 Moves towards freedom of investment for pension schemes
 Facilitates cross-border pension schemes
 Provides possible legal framework for Pan European
pension schemes
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Progress
EU Pensions Directive
 Slow implementation by Member States
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20 with full notification
2 with partial notification
3 with no notification
EU Commission taking legal action to enforce
 Tax infringements in 18 Member States
• Dividend and/or interest taxation
• EU Commission pursuing in European Court
 Committee of European Insurance and Pension
Supervisors (CEIOPS) supervising implementation
 Budapest Protocol agreed between pension supervisors
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Progress
What is now possible
 Investment pooling cross-border – already possible and
happening
 Pooling of liabilities
 Pooling of administration
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Progress
Other Current EU Pensions Regulation Initiatives
 EU Portability of Pensions Directive
 EU Directive on Equal Treatment in supply of goods and
services
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Is EU Regulation Delivering?
Obstacles
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Social and Labour Law
Tax
Defined Benefit Funding Standards
Pension Reform
Member State attitude
Inexperience
First mover disadvantage
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Is EU Regulation Delivering?
 Pensions Directive was a first step in Single Market for
pensions
 Implementation is very slow
 EU Commission legal enforcement is lengthy process
 Needs more indirect support?
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What Else Might Be Done?
Immediate Steps
 Implementation of Directive by all EU Member States
 Clarification of some Directive requirements
 Protocol in operation between Member State pension
supervisors
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What Else Might Be Done?
 Review of Pensions Directive (happening 2007 / 2008?)
 2nd Pensions Directive?
 More indirect support through CEIOPS?
 EU Commission action to encourage Member States to
take positive approach to Single Market for pensions
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In Conclusion
 Pensions Directive is reasonable first step
 More needs to be done directly and indirectly
 Full Pan-European Pension Funds
• Will take time
• And WILL come about
• But need another EU push
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