10 However, infringement proceedings have been enacted against three Member States. Our website uses cookies to offer you a better browsing experience, analyse site traffic, personalise content, and serve targeted advertisements. The number of Articles rises from 24 to 67. On 1 October 2018, the Pensions Authority published information (see under Related Files below) to give trustees an understanding of the breadth of their responsibilities arising from the provisions of the IORP II Directive. There is a significant change to the long-standing rules on funding of cross-border schemes. The latest Directive (also referred to as “IORP II”) was nearly three years in the making, with the EU Commission’s initial proposalfor a new Directive having been published in Ma… This is much more than a revision. The new directive on occupational pension schemes (IORP II) must be implemented in national law by mid-January 2019. New EIOPA guidance for national supervisors relating to ESG-related provisions in IORP II misrepresents the legal framework set by the directive, according to PensionsEurope. This briefing presents key considerations related to the implementation of IORP II in a number of major European countries. 10 key points on the IORP Directive Mk II . The various supervisory authorities were given the option of adopting additional special measures to allow them to exceed the European regulatory requirements and adapting them to their local conditions. However, there has been a delay in making the required Regulations and so it will be later in Q1 or Q2 2019 before they are likely to be made. The Directive requires that trustees and KFHs meet fit and proper criteria. The new EU Directive on the activities and supervision of institutions for occupational retirement provision (IORP II) was adopted in 2016. This information is provided to assist trustees in preparing for what the potential impact might be and what actions they should consider now. EU Directive 2016/2341 (commonly known as “IORP II”) became European Union law at the beginning of 2017 and the UK Government is required to implement it into UK law by 13 January 2019. IORP II directive in Ireland. Its scope is broad and includes Environmental, Social and corporate Governance (ESG) factors. The new IORP II Directive introduces new requirements for governance, own risk assessments and XBRL reporting. Directive 2016/2341 (IORPII) concerning the activities and monitoring of the Institutions for Occupational Retirement Provisions (IORP). “Fitness” means that the trustees as a group, and each person appointed as a KFH, has the necessary qualifications, skills and experience to perform the duties of that position. Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (recast)1 (hereafter IORP II) is a recast of and supplement to Directive 2003/41/EC of 3 … (11) This Directive respects the fundamental rights and observes the principles recognised by the Charter of Fundamental Rights of the European Union, in particular the right to the protection of personal data, the freedom to conduct a business, the right to property, the right of collective bargaining and action and the right to a high level of consumer protection, in particular by ensuring a higher level of transparency of … Powered by pTools Content Management Software, Funding standard and funding standard reserve, Public register of European occupational pension schemes. Implemented in the UK through the Pensions Act 2004, these new rules included the statutory funding objective and enhanced supervisory powers for the new regulator, TPR, from 6 April 2005. It transforms the Directive with extensive new requirements on governance and communications. Based on best practices we learned in our years of working in regulatory reporting, such as Solvency II and many national specific additions such as the FTK framework for pension funds … However, there are a few areas where schemes are likely to need to make changes, in particular: The new directive on occupational pension schemes (IORP II) must be implemented in national law by mid-January 2019. The Directive provides for pension scheme standards including: Governance – Trustees must have policies and procedures in place for all significant activities and must be able to demonstrate compliance with those systems and policies. Risk Management: IORP II requirements. 10 October 2018 (last update on: 9 November 2020) Author. The IORP II (Institutions for Occupational Retirement Provision) directive aims to provide a robust risk management framework for institutions for occupational retirement provision (IORPs). This Directive shall apply to institutions for occupational retirement provision. The Articles of the Directive require IORPs to: ■ Invest in accordance with the Prudent Person Principle. Telephone: +32 2 289 14 14, G9 - IORP II outcome - joint statement - November 2016.pdf, PensionsEurope welcomes the modernised rules for EU pension funds - September 2016.pdf, Legal Commentary on the Pension Funds Directive [dir. In the following paragraphs I’m going to try to put in broad terms (and in in plain English) what IORP II is, why it is coming about, what some of the fundamental issues around it are from an Irish perspective and why it has culminated in High Court legal proceedings. The wording of the recast Institutions for Occupational Retirement Provision Directive (‘IORP II’) was finalised at the end of 2016, with a transposition date of 13 January 2019. There has been a lot of talk in the industry about the IORP (Institutions for Occupational Retirement Provision) II Directive. Traditionally, employers establishing pension schemes do so through life companies or pension consultancies. Part of these requirements include the creation of a new risk management function within IORPs. The IORP II Directive sets common standards ensuring the soundness of occupational pensions and better protects pension scheme members and beneficiaries, by means of among others: (i) new governance requirements, (ii) new rules on IORPs’ own risk assessment, (iii) new requirements to use a depositary, and (iv) enhanced powers for supervisors. However, … IORP II Directive Ireland • Data governance, compliance, XBRL taxonomy ... Institutions for Occupational Retirement Provision). The EU deadline for transposition was in January 2019. Institutions for Occupational Retirement Provision (IORP) Download : FICHE IORP II 27 02 2020 VGB (PDF, 271 Ko) 06/11/2020. You can view the text of the IORP II Directive here. The IORP II Directive was transposed at the national level for each EU country on 13 January 2019. 21 November 2018. The original Pensions Directive (also known as “IORP I”) introduced a number of new rules for “IORPs” (broadly, occupational pension schemes). The DWP has confirmed that it intends to implement the requirements of IORP II, notwithstanding the imminence of Financial Stability, Financial Services and Capital Markets Union. Occupational retirement provisions directive (IORP 2) - transposition status; Occupational retirement provisions directive (IORP 2) - transposition status. The new EU Directive on the activities and supervision of institutions for occupational retirement provision (IORP II) was adopted in 2016. The imminent introduction of the EU’s IORP II directive in Ireland has been described by the Pensions Authority as the most significant regulatory change in at least a generation. However, pension scheme trustees will not be required to make Member States have until 13 January 2019 to do this. The new directive is wide-ranging and contains no less than 67 Articles covering areas such as trustee qualifications (trustees must pass a “fit and proper” test), risk management, auditing and reporting, cross-border activities, solvency, supervision and investment. The Authority expects trustees to have conducted and documented its own due PROPOSED REVISION OF IORP DIRECTIVE actuarial association of europe I 11 Introduction..... IORP I The current IORP Directive passed in 2003 as a first step towards creating an internal market for occupational retirement provision. Please visit our privacy statement page for more information about cookies and how we use them. Implementing IORP II in the UK EU Member States have until 13 January 2019 to implement the IORP II Directive into national law. It reviews the current directive (2003/41/EC) on retirement schemes. UK pension schemes are already subject to most of the requirements under existing UK legislation. The new directive came into effect on January 12, 2017, and member states have to incorporate it … 2003/41/EC] - October 2004, Policy note 2020/12 - EIOPA Supervisory Statement on practices within the registration or authorisation process of IORPs. All material should be retained and available for inspection and audit by the Authority. Exit interview: EIOPA’s Bernardino on industry defensiveness and where to take IORP II At the end of March, with his successor as yet unannounced, Gabriel Bernardino will step down as chair of the Frankfurt-based European insurance and occupational pensions supervisor after 10 years in office. On 23 October 2018, the UK Government laid regulations before Parliament which will implement the Directive’s governance and cross-border provisions. UK pension schemes are already subject to most of the requirements under existing UK legislation. First published on. IORP II is a European Pensions Directive which is due to become law in Ireland on or before 13 January 2019. The Government's "Roadmap for Pension Reform 2018 - 2023" published earlier this year signalled that legislation to transpose the IORP II Directive (the "Directive") into Irish law would be published before the end of September. • To prepare annual accounts and reports. IORP II entered into force in January 2019. Ian Devlin examines some of the issues employers may face once IORP II comes into force. The Authority is providing ongoing technical support to the Department of Social Protection in transposing the Directive at the earliest possible date. As IORP II is a directive, it does not have direct effect on schemes but must be implemented into national law by each Member State. The Authority is providing ongoing technical support to the Department of Social Protection in transposing the Directive at the earliest possible date. The EFRP followed its troubled prehistory. 11 The Directive also applies to the European Economic Area (EEA). The DWP has been considering its implementation approach, including roundtable discussions with industry representatives, culminating in some regulations being laid in Parliament on 23 October 2018 transposing IORP II relating to scheme governance and to the EU’s cross-border authorisation framework. An EU Directive on occupational pension schemes, called IORP II, was due to be implemented into Irish law by 13 th January 2019. In this section, … The specification for this XBRL reporting is published by EIOPA through a specific Pension Funds Taxonomy. Main Goals of IORP II The European Commission (EC) released the revised version of the Institutions for Occupational Retirement Provision Directive (IORP II) in December 2016. It includes requirements: • To register and to be run by “persons of good repute”. It tracked the slow passage of what has become Directive 2003/41/EC, the entry of wh ich The EU deadline for transposition was in January 2019. The Institutions for Occupational Retirement Provision Directive 2016/2341 is a European Union Directive designed to create an internal market for occupational retirement provision. Directive 2003/41/EC on the Activities and Supervision of Institutions for Retirement Provision 3 Foreword The IORP Directive took far too long to become European law. sections of the IORP II Directive (30/11/2016) General governance requirements (Article 21 1): •The system of governance shall include consideration of ESG factors related to investment assets in investment decisions, and shall be subject to regular internal review Risk-management (Article 25) The original Directive was released in 2003, and was replaced in … The IORP II requirements place significant focus on improving the risk management function in order to ensure that: own-risk assessments are carried out triennially, or after any significant change in risk profile; risk management is integrated into all management processes & decision making Where, in accordance with national law, institutions for occupational retirement provision do not have legal personality, Member States shall apply this Directive either to those institutions or, subject to paragraph 2, to those authorised entities responsible for managing them and acting on their behalf. IORP II is the key European regulation for workplace pension funds, replacing the 2003 IORP Directive. 9 Formally, all Member States have implemented the Directive. The Directive was published in the Official Journal on 23 September 2003, with implementation required on 23 September 2005 at the latest. The Directive clarifies that this means acting in the best long … It lays down minimum standards on funding pension schemes, the types of investments pensions may make and permits cross-border management of pension plans. Matters for pension trustees to consider ahead of the transposition of the IORP II Directive in the coming months.