Occupational pensions (IORP II) (Directive)

The EU Commission makes proposals for strengthening the internal market for occupational pensions. It wants to facilitate cross-border IORPs business, ensure effective supervision of IORPs and enhance governance. In addition it extends the obligations for providing information to members and beneficiaries and amends the investment rules.


The new definition of cross-border business creates legal clarity. The ability to transfer pension schemes across borders increases efficiency. The fact that the home Member State's investment requirements and information obligations will apply, reduces administrative costs and increases efficiency. Whether these changes will actually promote cross-border IORPs business is doubtful because of the requirement for fully-funded provisions. In the case of cross-border business, the host Member State's funding requirements should therefore apply.