Slide 1

IORP: Implementation and interpretation

Amsterdam, 15 March 2005

Ivo van EsEuropean Commission / DG Markt

Insurance and Pensions UnitIvo.van-Es@cec.eu.int +32-2-298.45.78

Slide 2

Fact sheet IORP Directive

Proposal: 13.11.2000 Adopted: 03.06.2003 (2003/41/EC) Published: OJ L 235/10 of 23.09.2003

NATIONAL IMPLEMENTATION

Implementation deadline: 23.09.2005

Slide 3

National implementation

Better monitoring of the application of Community law

(COM (2002) 725) Prime responsibility: MS Cooperation COM-MS is crucial

Expert committee Prior examination (NOT a green light)

Slide 4

Commission action

Bilateral meetings since the start

+ 22.10.2004: 1st Expert meeting

Main conclusions (Markt/2527/04) http://europa.eu.int/comm/internal_market/pensions/

docs/legislation/markt-2527-04-conclusions_en.pdf

02.03.2005: Request for questions 01.04.2005: Deadline for submissions

19.04.2005: 2nd Expert meeting

Slide 5

Some principles 1

Internal market Directive: EU + NO, FL, IS IORP = institution established for the

purpose of providing retirement benefits Single licence, Home State supervision

But: Host State supervision for social/labour law + some information requirements

Investments: Prudent person rule But: Host State may lay down more detailed

rules, provided they are prudentially justified Cross-border membership:

IORPs may accept sponsorship from abroad Undertakings may sponsor IORPs abroad

Slide 6

Some principles 2

Ring-fencing: adapt to the context (Articles 3, 4, 16(3) and 18(7))

Technical provisions: full funded Social and labour law

Article 20(5):“Relevant to the field of occupational pensions under which the pension scheme… must be operated”

Article 6(j): “Applicable to the relationship between the sponsoring undertaking and members”

Examples: Recital 37 Definition and payment of retirement benefits Conditions for transferability of pension rights

Slide 7

Pension schemePension scheme

A “simplified” model

Social Partners Social Partners

RelevantSocial andlabour law

IORPDirective

IORP

IT ALM

AdministrationAsset mgt.

Slide 8

Next steps

Article 21: Supervisory cooperation CEIOPS Multilateral cooperation protocol

2nd expert meeting 19.04.2005 Solvency II: to be decided at a later

stage DG EMPL: Directive on portability DG TAXUD: Infringements