Institution for Occupational Retirement Provisions Directive (IORP II)
The Institutions for Occupational Retirement Provision (IORP) Directive issued in 2003 is a risk-based supervisory framework that lays down basic requirements for occupational pension funds and facilitates an internal market for occupational retirement institutions within the EU. The financial crisis, ageing demography and focus on long-term investments (CMU) have led to the need for demystifying relevant procedures and removing obstructions of IORP I.
The updated directive introduces improvements to:
- Better protect occupational pension scheme members by introducing new requirements on the pension fund’s governance, the information provided to members and the supervision of pension funds
- Remove obstacles to facilitate the cross-border activities of occupational pension funds
1Implementation / enforcement 03/2014 - 06/2016
2Discussion / consultation 06/2016 - 03/2017
3Implementation / enforcement 03/2017 - 12/2018
4In effect 12/2018 -
The governance and disclosure requirements of IORP II are based on the similar requirements of Solvency II for the insurance sector (pillar 2 and pillar 3). The governance and disclosure requirements are expected to have a significant impact on the governance, risk assessment, member communications and public disclosure of IORPs. IORPs need to begin assessing the operational changes required to implement these requirements. IORPs can learn about the impact of the governance and disclosure requirements on their organisation structure from the insurance sector.
Interpretation or treatment of certain components is not fully crystallised and depends on local transposition by Member State regulators. IORPs need to monitor the developments to be better informed of the regulatory requirements.
European Commission: IORP
IORP II – de actuariële functie