(...PICT...)|EUROPEAN COMMISSION|

Brussels, 7.7.2010

SEC(2010) 830 final

COMMISSION STAFF WORKING DOCUMENT

EU LEGISLATION, COVERAGE AND RELATED INITIATIVES Accompanying document to the GREEN PAPER towards adequate, sustainable and safe European pension systems {COM(2010) 365 final}

TABLE OF CONTENTS

1. Description of EU legislation covering the pension pillars 2

1.1. Social Security Regulation 2

1.2. The IORP Directive 2

1.3. The Insolvency Directive 2

1.4. The existing Directive on safeguarding supplementary pension rights of a person moving within the EU and the draft proposal on portability of supplementary pension rights 2

1.5. The Life Assurance Directive 2

2. Related EU legislation and initiatives 2

2.1. UCITS IV Directive 2

2.2. Pre-contractual information disclosure 2

2.3. Financial education 2

2.4. Corporate Governance and remuneration policies 2

2.5. Non-life Insurance Directive (health) 2

2.6. Health policy 2

2.7. The Gender Equality Directives 2

2.8. Taxation 2

2.9. Statistics 2

2.10. EU-wide reviews 2

3. CEIOPS mapping of EU prudential regulation 2

3.1. Statutory funded pension schemes/institutions 2

3.2. Occupational pension schemes/institutions 2

3.3. Individual pension schemes/institutions 2

This document describes EU legislation covering the pension pillars (section 1) and related EU legislation and initiatives (section 2). A mapping of the EU legislation applicable to pension schemes/institutions in the different EU Member States is provided in section 3. This mapping focuses in particular on prudential regulation and was carried out by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).

1. Description of EU legislation covering the pension pillars

1.1. Social Security Regulation

EU law in the field of social security provides for the co-ordination but not the harmonisation of social security schemes. This means that each Member State is free to determine the details of its own social security system, including which benefits are to be provided, the conditions of eligibility, how these benefits are calculated and what level of contributions should be paid. EU law provisions, in particular Regulations No 883/2004 Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (Text with relevance for the EEA and for Switzerland), OJ L 166, 30.4.2004, p. 1–123 and No 987/2009 Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems. (replacing Regulations No 1408/71 Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community and No 574/72 Council Regulation (EEC) No 574/72 of 21 March 1972 fixing the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and their families moving within the Community since 1 May 2010), establish common rules and principles which must be observed by all national authorities when applying national law. These rules ensure that the application of the different national legislations respects the basic principles of equality of treatment and non-discrimination and persons exercising their right to free movement within the EU are not adversely affected by the application of different national legislations.[1][2][3][4]

Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (Text with relevance for the EEA and for Switzerland), OJ L 166, 30.4.2004, p. 1–123

Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems.

Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community

Council Regulation (EEC) No 574/72 of 21 March 1972 fixing the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and their families moving within the Community

With regard to pensions, the EU Coordination Regulations cover old-age pensions, survivors' pensions and invalidity pensions. In general, only statutory schemes are coordinated. The EU Coordination rules lay down for the following principles:

– Aggregation: periods of insurance or residence completed under the legislation of another Member State are taken into account if necessary for entitlement to a benefit;

– Waiving of residence clauses: entitlement to a pension does not depend on residence in the Member State granting the pension;

– Each Member State where a person was insured for at least one year pays a pension; there is no 'transfer' of pension rights to the pension system of another Member State.

1.2. The IORP Directive

A major milestone was reached in 2003 with the adoption of Directive 2003/41/EC Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision, OJ L 235 , 23/09/2003 P. 0010 – 0021. on the activities and supervision of institutions for occupational retirement provision (IORP Directive). It enables pension funds to benefit from the Internal Market principles of free movement of capital and freedom to provide services. The Directive allows pension funds to manage occupational pension schemes for companies that are established in another Member State and allows European-wide companies to have only one pension fund for all subsidiaries in Europe. The Directive establishes prudential standards to ensure that members and beneficiaries are properly protected, as well as requirements concerning the disclosure of information. The Directive is, however, based on minimum harmonisation and mutual recognition and it does not cover all forms of occupational pension provision.[5]

Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision, OJ L 235 , 23/09/2003 P. 0010 – 0021.

1.3. The Insolvency Directive

Directive 2008/94/EC Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008 on the protection of employees in the event of the insolvency of their employer OJ L 283, 28.10.2008, p. 36 provides for the protection of employees’ rights in the event of the insolvency of their employer, in particular in order to guarantee payment of their outstanding claims. As far as supplementary occupational pensions are concerned, Article 8 requires Member States to adopt the necessary measures to protect these pensions. The European Court of Justice has ruled Judgment of the Court of 25 January 2007 (Carol Marilyn Robins and others v Secretary of State for Work and Pensions). C-278/05. ECR 2007 Page I-01053 that the Directive places no obligation on the Member States themselves to fund the rights to old-age benefits. Furthermore the Court took the view that the Directive cannot be interpreted as demanding a full guarantee of the rights in question. The Directive does no more than call, in general terms, for adoption of the measures necessary to “protect the interests” of the persons concerned, while leaving the Member States considerable latitude as regards the level of protection and ruling out any obligation to provide a full guarantee. At the same time, the Court considered that a system which may, in certain cases, lead to a guarantee of benefits of less than half of that entitlement, cannot be deemed to fall within the definition of “protect” as applied in the Directive.[6][7]

Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008 on the protection of employees in the event of the insolvency of their employer OJ L 283, 28.10.2008, p. 36

Judgment of the Court of 25 January 2007 (Carol Marilyn Robins and others v Secretary of State for Work and Pensions). C-278/05. ECR 2007 Page I-01053

1.4. The existing Directive on safeguarding supplementary pension rights of a person moving within the EU and the draft proposal on portability of supplementary pension rights

Unlike with social security pensions which are aggregated under EU rules, people who have supplementary pension rights may lose out when they change jobs within or between countries. A first step to tackle this issue was Council Directive 98/49/EC Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community, OJ L 209, 25.7.1998, p. 46–49. , which effectively ensured that people moving across borders were treated no worse than those moving within a Member State. The Directive does not cover, however, what is often called the "portability" of supplementary pensions even though this may have a serious effect on worker mobility.[8]

Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community, OJ L 209, 25.7.1998, p. 46–49.

The Commission has recognised that insufficient portability of supplementary pension rights can create important obstacles to workers' mobility, and therefore to the free movement of workers which is one of the basic rights enshrined in the Treaty. The Commission proposed a new Directive in October 2005 to set minimum standards for the acquisition, preservation and transferability of supplementary pension rights. These standards would apply to people moving both within and between EU countries. Internal mobility was included because it was impractical to separate internal and external mobility. In addition, labour mobility was key to promoting economic dynamism and labour market adjustment, as set out in the Lisbon Strategy.

The proposal was revised by the Commission in 2007 to omit the transferability element which had been opposed by some as technically difficult and potentially burdensome or open to abuse. As a result, the emphasis was laid on the timely acquisition of pension rights and their subsequent preservation (indexation). However, it has still not been possible to reach the unanimous agreement needed in Council. The proposal remains 'live'.

1.5. The Life Assurance Directive

The internal market in the field of life assurance, allowing insurance undertakings to operate throughout the EU and to establish and provide services freely, was initiated in 1979 with the adoption of the First Life Directive. First Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance, OJ L 63, 13.3.1979, p. 1–18. The subsequent improvements to the legal framework were recast in 2002 into a single text (Directive 2002/83/EC Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance, OJ L 345, 19.12.2002, p. 1–51. ). The prudential rules applicable to life assurance undertakings were substantially overhauled in 2009 with the adoption of the Solvency II Directive (Directive 2009/138/EC Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA relevance), OJ L 335, 17.12.2009, p. 1–155. ). The harmonisation of insurance regulation will give a new impetus to the internal market for life assurance products through greater economic efficiency and stronger protection of policy holders. It was, however, not the objective of the Solvency II Directive to modernise the policyholder information requirements, which continue to differ significantly across Member States.[9][10][11]

First Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance, OJ L 63, 13.3.1979, p. 1–18.

Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance, OJ L 345, 19.12.2002, p. 1–51.

Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA relevance), OJ L 335, 17.12.2009, p. 1–155.

2. Related EU legislation and initiatives

2.1. UCITS IV Directive

The UCITS Directive Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), OJ L 302, 17.11.2009, p. 32–96. contains the regulatory framework for retail funds at the European level and lays the basis for a single market in these funds. UCITS IV changes were adopted in 2009 to address a number of efficiency concerns, investor protection issues, and practical problems that have been identified in relation to the UCITS industry, the combination of which was considered to be limiting the development of the UCITS market.[12]

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), OJ L 302, 17.11.2009, p. 32–96.

More specifically, changes were made, for example, in the areas of governance and risk management. The UCITS IV Directive contains changes that enhance the effectiveness of the management company passport, in particular by providing for safeguards that foster supervisory cooperation and mutual confidence. To ensure this confidence, the Commission is due to adopt Level 2 implementing measures by the end of June 2010 that will harmonise certain attributes of management companies business (in particular organisational arrangements including rules of conduct, conflicts of interest but also risk management and measurement). As a result, once the management company is approved in one Member State it will be subject to a harmonised set of standards across the EU.

2.2. Pre-contractual information disclosure

There are several examples of testing of pre-contractual information for financial services, both at EU and national level. At the EU level, the Commission asked OPTEM and its partners in the 27 Member States to carry out a qualitative study among consumers on the subject of pre-contractual information for diverse types of financial products, including consumer credit, mortgage loans and investment services. A summary report was made available in January 2008. Pre-contractual information for financial services, January 2008, available at http://ec.europa.eu/consumers/rights/docs/PCI_final_report_22Feb2008_en.pdf[13]

Pre-contractual information for financial services, January 2008, available at http://ec.europa.eu/consumers/rights/docs/PCI_final_report_22Feb2008_en.pdf

The UCITS IV Directive requires UCITS to provide a Key Investor Information (KII) sheet in a harmonised and standardised form to the investor. On the basis of a consumer testing that fed into advice from the Committee of European Securities Regulators (CESR), the Commission will adopt Level 2 implementing measures by the end of June 2010. The results of the testing underlined the difficulty faced by retail investors in effectively engaging with and using information about investment products. It showed that key information on risks, costs and performance was calculated and presented inconsistently or in such a way that it was difficult to use, and detailed content or presentation of information was not standardised. The Level 2 implementing measures are to ensure that the communication and presentation of Key Investor Information to individuals is visual, simple, and facilitates comparisons across funds.

The Commission announced in its Communication of 30 April 2009 on Packaged Retail Investment Products (PRIPs) Communication from the Commission on Packaged Retail Investment Products, 30.4.2009, COM(2009) 204 final its commitment to introduce a new horizontal approach to the regulation of sales and pre-contractual disclosures for these products, so as to ensure a level playing field between different types of investment products offered in the retail market. The aim is to ensure that consumer protection measures are effective and appropriate. Following the Communication, the Commission will focus on developing specific legislative proposals for this new horizontal approach, possibly in Spring 2011. The PRIPs proposals will be subject to their own impact assessment, which will consider their incremental impact for all stakeholders.[14]

Communication from the Commission on Packaged Retail Investment Products, 30.4.2009, COM(2009) 204 final

2.3. Financial education

The best way to increase the financial capability of consumers in the Internal Market is by developing coordinated strategies in individual Member States. The role of the Commission is to encourage the Member States to tackle financial education issues and to facilitate an exchange of best practices. The Commission has taken initiatives to organise expert meetings, maintain a European database, develop on-line tools for teachers and support events through patronage.

2.4. Corporate Governance and remuneration policies

Following an announcement in the Commission Communication "Driving European Recovery" of March 2009, the Commission adopted a Green Paper on 2 June 2010 Green Paper on Corporate governance in financial institutions and remuneration policies, COM(2010) 284, available at: http://ec.e u ropa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_en.htm in order to launch a consultation process on possible (legislative and non-legislative) EU measures in the area of Corporate Governance in financial institutions. The Green Paper addresses, among others, the role of boards, shareholders, supervisors and external auditors in ensuring good corporate governance, governance of the risk management process and remuneration policies.[15]

Green Paper on Corporate governance in financial institutions and remuneration policies, COM(2010) 284, available at:

http://ec.e u ropa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_en.htm

The Green Paper states that corporate governance should take account of the interests of other stakeholders (depositors, savers, life insurance policy holders, etc), as well as the stability of the financial system, due to the systemic nature of many players. A fortiori, these considerations are relevant for pension funds, considering their economic importance and their growing role in the society.

Furthermore, the Commission intends to consult, in a second stage, on possible measures in Corporate Governance for all listed companies early in 2011.

2.5. Non-life Insurance Directive (health)

The First Non-life Insurance Directive (Directive 73/239/EEC First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance, OJ L 228 , 16/08/1973 P. 0003 – 0019. ) specifies that health insurance constitutes insurance business. Accordingly, supplementary private health insurance (insurance which provides for health cover which is already covered by the statutory social security system), complementary private health insurance (insurance which provides for additional health cover which is outside the scope of the statutory social security) and substitutive health insurance (insurance serving as a partial or total alternative to health cover provided by the statutory social security system) are subject to the Non-life Insurance Directives. The first Non-life Insurance Directive excludes from the scope of the application of the non-life insurance directives "insurance forming part of a statutory system of social security." The same applies to long-term care insurance.[16]

First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance, OJ L 228 , 16/08/1973 P. 0003 – 0019.

2.6. Health policy

The state of people's health makes a significant difference between being able to work or not and therefore impacts on retirement age and expenditure on pensions. National healthcare reforms aimed at helping citizens to age in good health as well as EU action to promote healthy ageing (as foreseen in the EU Health Strategy White Paper) can therefore contribute to achieving the Europe 2020 objectives of retaining citizens longer on the labour market.

A population ageing in bad health means a smaller workforce with many people unable to work because of health problems, lower retirement age and therefore greater spending on pensions. A population ageing in good health can continue working as it grows older thus contributing to rising retirement age and lowering spending on pensions. Citizens in good health retire about two years later than workers in poor health. Survey of Health, Ageing and Retirement in Europe, Mannheim Research Institute for the Economics of Aging (MEA), 2008[17]

Survey of Health, Ageing and Retirement in Europe, Mannheim Research Institute for the Economics of Aging (MEA), 2008

2.7. The Gender Equality Directives

Three Gender Equality Directives have an impact on pension schemes.

Directive 79/7/EEC Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security ( OJ L 6, 10.01.1979). implements the principle of equal treatment between men and women in matters of social security and notably covers statutory pensions. It however contains a number of exceptions to the principle of equal treatment. Member States are, for example, allowed to maintain different retirement ages for men and women. At the same time, even if there is no obligation flowing from EU gender equality law to equalise pensionable ages for men and women in the field of social security, gender equalisation is often a first step in reforms aimed at increasing the retirement age in general to preserve the adequacy and sustainability of pensions.[18]

Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security ( OJ L 6, 10.01.1979).

Directive 2006/54/EC Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (recast - OJ L 204 of 26.07.2006). It notably repeals Directive 86/378/EC (amended by Directive 96/97/EC) on occupational social security schemes ( OJ L 225, 12.08.1986). on employment and occupation covers occupational pension schemes. In accordance with the case law of the European Court of Justice, this framework also applies to pension schemes for a particular category of worker such as that of public servants if the benefits are paid by reason of the employment relationship with the public employer. In this case, these benefits are considered as pay. [19]

Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (recast - OJ L 204 of 26.07.2006). It notably repeals Directive 86/378/EC (amended by Directive 96/97/EC) on occupational social security schemes ( OJ L 225, 12.08.1986).

Finally, Directive 2004/113/EC Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (OJ L 373 of 21.12.2004). prohibits discrimination between women and men in the access to and supply of goods and services and therefore covers private/individual pension products. It contains an exception enabling Member States to permit proportionate differences in individuals' premiums and benefits where the use of sex is a determining factor in the assessment of risk based on relevant and accurate actuarial and statistical data (Article 5 (2)).[20]

Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (OJ L 373 of 21.12.2004).

2.8. Taxation

In parallel to its proposal of the IORP Directive, the Commission presented a Pension Taxation Communication The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001) 214 final. in April 2001. At the time, many Member States did not grant tax relief for the payment of pension contributions to foreign pension funds, whereas they did so for payments to domestic funds. This would hinder the functioning of the proposed IORP Directive. The Pension Taxation Communication concluded that the Member States cannot discriminate against pension contributions paid to foreign IORPs. After attempts to find common solutions with the Member States in Council discussions, the Commission launched infringement procedures where necessary. Most Member States adapted their legislation. In two cases the Court of Justice of the EU ruled that if domestic pension contributions were tax deductible, contributions paid to IORPs elsewhere in the EEA should also be tax deductible Commission vs. Belgium , Case C-522/04, Commission vs. Denmark , Case C-150/04. . Concrete result of the Commission's work in the area is that mobile workers can now remain in their home country pension scheme if they take up a job in another Member State and contributions to IORPs in other Member States can now be paid without tax discrimination. [21][22]

The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001) 214 final.

Commission vs. Belgium , Case C-522/04, Commission vs. Denmark , Case C-150/04.

The Pension Taxation Communication also concluded that discriminatory tax rules can be an obstacle to the mobility of pensions. In Commission vs. Belgium Case C-522/04. , the Court of Justice of the EU ruled that it is contrary to EU law to tax transfers of pension capital from domestic pension funds to funds established elsewhere in the EEA if transfers of pension capital between domestic pension funds are tax free. The Commission intends to examine whether there are any other Member States with similar rules.[23]

Case C-522/04.

In April 2003 the Commission published a Dividend Taxation Communication Dividend taxation of individuals in the Internal Market, COM(2003) 810 final. . On the basis of the case law of the Court of Justice of the EU this Communication concluded that dividends which leave a Member State (outbound dividends) cannot be taxed higher than dividends which stay in the country (domestic dividends). Further to the Communication the Commission opened a large number of infringement cases against those Member States that discriminated against foreign IORPs. Some Member States have already changed their law and eliminated the discriminations; a few others have been referred to the Court of Justice of the EU. [24]

Dividend taxation of individuals in the Internal Market, COM(2003) 810 final.

2.9. Statistics

Several EU bodies are involved in the statistical work for pensions. The purpose of the Indicator Sub-Group (ISG) of the Social Protection Committee (SPC) is to collect data on coverage and contribution rates. Eurostat collects data on social protection benefits (ESSPROS), disposable income (EU-SILC) and pension funds (Structural Business Statistics). The European Central Bank (ECB) collects statistics on the volumes (stocks and flows) of the assets and liabilities of pension funds and insurance corporations. The future European Systemic Risk Board (ESRB) is likely to step up its data requirements for financial stability purposes. The European Commission also participates in international work and has engaged in a joint project with the OECD to collect statistics on the adequacy of benefits from private pension provision.

In the future, retired people will receive their pensions from at least two, if not more, sources (and pillars). Thus, the current statistical frameworks - even if improved - will not be able to provide comprehensive and reliable information on regular pension-type revenues. It is essential, therefore, to define precisely what sorts of regular receipts can be considered as a pension, how different revenue streams may be added, and how risks related to some resources are to be measured.

2.10. EU-wide reviews

A study carried out for the European Commission in 2007 "The EU Market for Consumer Long-Term Retail Savings Vehicles" (BME Consulting, 15 November 2007); available at http://ec.europa.eu/internal_market/finances/docs/cross-sector/study_en.pdf provided an insight into the range of products in which retail clients invest when they save for the long term: namely term bank deposits, securities, investment funds, life assurance contracts and funded pension schemes. It illustrated the degree of integration in this market in the EU. The study also provided a snapshot of the drivers of consumer behaviour, in terms of both reasons for saving and choice of vehicle.[25]

"The EU Market for Consumer Long-Term Retail Savings Vehicles" (BME Consulting, 15 November 2007); available at http://ec.europa.eu/internal_market/finances/docs/cross-sector/study_en.pdf

A more recent study carried out for European Commission in 2009 "Study on Equity Release Schemes in the EU" (Institut für Finanzdienstleistungen, January 2009); available at: http://ec.europa.eu/internal_market/finservices-retail/docs/credit/equity_release_part1_en.pdf indicated that 13 Member States have some form of Equity Release Scheme (Austria, Bulgaria, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands, Romania, Spain, Sweden, UK). The most significant markets are the UK, Ireland and Spain. ERS account for less than 0.1% of the EU mortgage market. The market for Loan model schemes is larger than that for Sale model schemes: the estimated volume of Loan model schemes is EUR 3.3 billion (50 000 contracts), whereas that for Sale model schemes is EUR 1.4 billion (with just under 20 000 contracts).[26]

"Study on Equity Release Schemes in the EU" (Institut für Finanzdienstleistungen, January 2009); available at:

http://ec.europa.eu/internal_market/finservices-retail/docs/credit/equity_release_part1_en.pdf

3. CEIOPS mapping of EU prudential regulation

The statutory pay-as-you-go (PAYG) pension, an unfunded defined-benefit scheme, is the basis for the overall pension income for most EU citizens. A number of Member States have supplemented the statutory pension scheme with a funded tier in the form of a defined-contribution scheme, which is administered in many cases by a private financial institution. Other Member States have, instead of or in addition to these schemes, set up unallocated demographic reserve funds to support statutory PAYG pensions.

In many Member States the statutory pension is supplemented by occupational pensions and individual pensions. In some instances occupational pensions are offered on a PAYG basis or through book reserves on the employer's balance sheet, although the bulk is provided through funded schemes operated by pension funds or insurance undertakings (e.g. group insurance contracts). Individual pensions are arranged by contract directly with a product provider - generally a life assurance company or a pension fund. An individual’s contributions are accumulated and invested, and the resulting fund is subsequently used to provide pension benefits for the individual.

Participation in occupational and individual schemes may be mandatory or voluntary, although increasingly Member States are allowing the possibility of opting-out from mandatory pension schemes.

Mirroring the disparate developments in Member States, the distinction between the various pension pillars has also become less straight-forward in recent years. At the request of the Commission, CEIOPS has carried out a detailed mapping exercise in 2009 to clarify the EU prudential regulation that applies to the different pension schemes/institutions. The EU Directives considered were Directives 2003/41/EC (IORP), 2002/83/EC (Life) and 85/611/EEC (UCITS). Some Member States also referred to Directives 2006/48/EC (Banking) and Directive 93/22/EEC (Investment Services), repealed by Directive 2004/39/EC (MiFID). The remainder of this section summarises the main results of the mapping. The more detailed information is provided in Table 1.

Moreover, on the basis of this mapping, the Commission, with the collaboration of CEIOPS, is conducting a further exercise aiming to review data on private pension products. Preliminary results of this exercise indicate that occupational products reach a total of roughly €3.6 trillion, of which €2.6 trillion in IORPs, €0.5 trillion in insurance products and €0.5 trillion in other investment vehicles. Personal pension products account for around €1.7 trillion, of which €0.7 trillion in insurance products, € 0.9 trillion in other investment vehicles and a further €58 billion in IORPs.

3.1. Statutory funded pension schemes/institutions

Statutory funded pension schemes/institutions, whether mandatory or not, are covered by EU Regulations 883/2004 and 987/2009 (replacing Regulations 1408/71 and 574/72 since 1 May 2010). According to the mapping, they exist predominantly in the Member States that joined the EU in the period 2004-2007. Employers can pay contributions into the schemes in the case of EE.

There are no EU prudential rules for the pension funds that are part of statutory funded pension schemes/institutions. Most of the Member States concerned therefore do not apply EU prudential regulation. Some Member States have, however, applied the Life or UCITS Directive to these pension funds. The mapping has highlighted the following situation:

– IORP Directive: n/a

– Life Directive: EE

– UCITS Directive: EE

– Banking Directive: n/a

– Investment Services (MiFID): n/a

– No EU prudential rules: BG, LV, LT, HU, PL, RO, SK

3.2. Occupational pension schemes/institutions

The IORP Directive covers many occupational pension schemes/institutions, but not all. The Directive has been implemented by almost all the Member States, with only a few exceptions. Article 4 of the IORP Directive, allowing many of the rules in the IORP Directive to apply to the occupational retirement provision business of life assurance undertakings, is used in three Member States. The IORP Directive explicitly excludes book reserve and PAYG schemes from its scope. In many Member States there are also occupational pension schemes that are subject to the Life or UCITS Directives. The mapping has highlighted the following situation:

– IORP Directive: - Implemented with a few exceptions.

- Article 4: FR, LT, SE

– Life Directive: BE, DK, DE, EL, LU, NL, AT, PL, PT

– UCITS Directive: PL

– Banking Directive: n/a

– Investment Services (MiFID): n/a

– No EU prudential rules: - book reserves: BE, DE, IT, CY, LU, AT, PT, SE

- PAYG: CY

3.3. Individual pension schemes/institutions

Individual pension schemes/institutions are covered by a broad range of directives: Life, UCITS, banking and investment services (MiFID). The IORP Directive is also used by some Member States that have chosen to apply the IORP Directive to individual pension schemes in the national transposition (e.g. RO).

There are, however, also a number of individual pension schemes/institutions that are not covered by any EU prudential regulation. These are voluntary supplementary pensions in the form of individual DC schemes in seven Member States (BG, CZ, ES, HU, MT, PT, SI). In some of these Member States, the employers can act as a third person to contribute to personal accounts (BG, CZ), while in another it is common practice for employers to pay contributions on behalf of the member (HU). By contrast, in some Member States (ES, MT), employers are not allowed to contribute to personal accounts.

The mapping has produced the following situation:

– IORP Directive: IT, LV, RO

– Life Directive: BE, DK, DE, EE, IE, ES, FR, IT, CY, LT, LU, HU, NL

AT, PL, PT, SE, UK

– UCITS Directive: BE, DE, EE, LT, LU, HU, PL, PT

– Banking Directive: DE, LU, HU, PL

– Investment Services (MiFID): PL

– No EU prudential rules: BG, CZ, ES, HU, MT, PT, SI

– Table 1 – EU regulation applicable to pension institutions/schemes

Important note : This table was prepared by CEIOPS and the information reflects the situation prevailing in May 2010. It has however been the decision of each member of CEIOPS as to what kind of institution, scheme or product is included in the table. The national information is therefore not necessarily comprehensive. Important country-specific notes are contained at the end of this table.

|Domestic name |Legal form (domestic)|Legal form (English)|Art. 3? Y/N|||||

Be|IRP (Institutions de Retraite Professionnelle)/IBP (Instelling voor Bedrijfspensioenvoorziening)|until 01/01/2012:ASBL/VZWorAAM/OVVAs from 01/01/2007:OFP|non-profit organisationor mutual insurance associationOrganisation for Financing Pensions||DB, DC or mixed|Voluntary (b)|Occupational (c)|IORP|

|entreprise d’assurance/ verzekeringsonderneming|société par actions/ vennootschap op aandelen or société coopérative/coöperatieve vennootschaporAAM (Association d’Assurances Mutuelles)/OVV (Onderlinge Verenigingsvereniging)|limited partnership with a share capitalcooperative partnershipmutual insurance association||same as above through group insurance+ individual life insurance|voluntary|Occupational or individual|Life|

|fonds d'épargne-pension / pensioenspaarfonds|OPCVM/ICBE: SICAV/BEVEK(d)|UCITS: open-end investment company||individual pensions savings|voluntary|individual|UCITS|

|Book reserves||||DB/DC (e)|voluntary|occupational|Excluded from IORP Directive based on Art. 2.2.(e)|

|Tværgående pensionskasse|Pensionskasse|General Pension Funds|No|DC or unit-linked|Mandatory||Life|

DE|Pensionskasse |AktiengesellschaftVersicherungsverein auf GegenseitigkeitKörperschaft des öffentlichen Rechts Anstalt des öffentlichen Rechts|Joint-stock companyMutual insurance associationCorporationunder public lawInstitution under public law|No||Voluntary (a)|occupational|IORP|

|Pensionsfonds (b)|AktiengesellschaftPensionsfondsverein auf Gegenseitigkeit|Joint-stock companyMutual pension fund association|No||Voluntary (a)|Occupational|IORP|

|Direktzusage (book-reserve schemes) (b)|||No||Voluntary (c)|Occupational|Excluded from IORP Directive based on Art.2.2(e)|

|Unterstützungskasse (b)|Gesellschaft mit beschränkter HaftungEingetragener VereinStiftung|Limited liability companyRegistered associationFoundation|No||Voluntary (c)|Occupational|Excluded from IORP Directive based on Recital 16 and Art. 2.2(d)|

|Lebensversicherungs-unternehmen (Direktversicherung – direct insurance) (d)|Aktiengesellschaft Versicherungsverein auf GegenseitigkeitKörperschaft des Öffentlichen RechtsAnstalt des öffentlichen Rechts|Joint-stock companyMutual insurance associationCorporation under public lawInstitution under public law|No||Voluntary (a)|Occupational|Life|

|Altersvorsorgevertrag (contract)|||No|Personal pension schemes|Voluntary|Individual|Life, Banking, UCITS|

|Basisrentenvertrag (contract)|||No|Personal pension schemes|Voluntary|Individual|Life, Banking, UCITS|

|ΑΣΦΑΛΙΣΤΙΚΕΣ ΕΠΙΧΕΙΡΗΣΕΙΣ ||||Group Insurance Contracts (c)|||Life (d)|

FR|assureur vie|Société anonymeOr Société d’assurance mutuelle|Stock company Or Mutual insurance company||DC/DB ||Occupational or individual (a)|IORP (Art. 4) or Life (b)|

|Institution de prévoyance|Institution de prévoyance|Paritarian institution ruled by the “social protection code”||DC/DB||Occupational or individual (a)|IORP (Art. 4) or Life (b)|

|« mutuelle »|Mutuelle du code de la mutualité|Mutual company ruled by a specific code||DC/DB||Occupational or individual (a)|IORP (Art. 4) or Life (b)|

|Piani pensionistici individuali (Pip) (f) |Patrimonio di destinazione autonomo istituito da una compagnia di assicurazione in modo separato rispetto al patrimonio della stessa |An autonomous pool of assets instituted by an insurance company separately from its own assets|No||Voluntary|Individual|Life|

|Σχέδια Συντάξεως (c)||Pay as you go pension schemes|No|DB|Mandatory|occupational|Excluded from the IORP Directive|

|Σχέδιο Φιλοδωρήματος (d)||Book reserve|No|DB|Mandatory|occupational|Excluded from the IORP Directive|

|N/A||State funded pension scheme (c)||DC|Mandatory, voluntary|Statutory funded|Regulation 1408/71|

LT|Pensijų asociacija|Asociacija|Association||DC, DB (a)|Voluntary|Occupational|IORP|

|Gyvybės draudimo įmonė, vykdanti profesinių pensijų kaupimo veiklą |Akcinė bendrovė/ Uždaroji akcinė bendrovė/Europos Bendrovė|Public limited liability company/Private limited liability company/European company ( Societas Europaea )||Life assurance contract under which occupational pensions are accumulated |Voluntary|Occupational|IORP (Art. 4)|

|Valdymo įmonė|Akcinė bendrovė/Uždaroji akcinė bendrovė|Public limited liability company/Private limited liability company/||DC|Voluntary|individual|UCITS (b)|

|Gyvybės draudimo įmonė|Akcinė bendrovė/ Uždaroji akcinė bendrovė/Europos Bendrovė|Public limited liability company/Private limited liability company/European company ( Societas Europaea )||Life assurance contract |Voluntary|individual|Life|

LU|Fonds de pension (CSSF) (a)|Sepcav and assep|Pension savings companies with variable capital and pension savings associations|No||voluntary|Occupational|IORP|

|Fonds de pension (CAA) (b)|Association d’assurances mutuelles, société coopérative, société coopérative organisée comme une société anonyme ou association sans but lucratif|Mutual insurance associations, co-operative companies, co-operative companies organized as a public limited company, charitable associations|No||voluntary|Occupational|IORP|

|Assurances de groupe|Enterprise d’assurances / Contrats d’assurance groupe|Insurance company/ Group insurance contracts|No||voluntary|Occupational|Life|

|Régime interne de pension|NA Provisions au bilan|NA Book-reserve schemes|No||voluntary|Occupational|No relevant prudential EU legislation applicable|

|Contrat de prévoyance-vieillesse |Produits de prévoyance-vieillesse représentés par des produits d’assurance ainsi que par des produits bancaires investis dans des organismes de placement collectif agréés|Pension products represented by insurance products as well as by banking products invested in licensed units for collective investment|No||voluntary|Individual|Life, Banking, UCITS (c) |

|nyugdíjelőtakarékossági számla (c)||pension saving account|No|DC|voluntary|Individual|Banking, UCITS (c)|

|Personal Retirement Scheme|Trust Contractual|Trust Contractual (a)|No|Trust DeedContract between member and the Retirement Scheme Administrator||Individual (d)|No EU prudential legislation|

NL|Pensioenfonds (´pension fund´)|Stichting|Foundation (a)|No||Mandatory for industry-wide schemesVoluntary opt-out for company schemes|Occupational (b)|IORP|

|Verzekeraar (´insurance company´ or ´insurer´)|Naamloze vennootschap|Public limited company|No||Voluntary|Occupational (b)/individual|Life|

|Direkte Leistungszusagen (Book-reserve schemes)|||No|DB/DC|voluntary|Occupational|Excluded from IORP Directive based on Art 2.2(e)|

|zarządzający zagraniczny(foreign manager)||Not specified – all form of IORPs notified by relevant authorities from other Member States|No|DC|voluntary|Occupational (a)|IORP (c)|

|Indywidualne konta emerytalne|1) Fundusz inwestycyjny,2) Zakład ubezpieczeń na życie,3) Bank,4) instytucja prowadzącadziałalność maklerską.|1) Investment fund - in Polish legal framework is registered as separate legal entity ,2) joint-stock company ,3) joint-stock company ,4) Limited company or joint-stock company|No|DC |voluntary|individual|1) UCITS2) Life3) Banking4) ISD|

|Planos de pensões financiados no balanço da empresa (book-reserve schemes)|||No|DB/DC (c)|voluntary|occupational|Excluded from IORP Directive based on Art. 2.2(e)|

|Särskild redovisning av pensionsskuld (Book reserves) (d)|||No|DB|Voluntary (a)|Occupational|Excluded from IORP Directive based on Art. 2.2(e)|

|Innskuddspensjons-ordninger|1) Pensjonskasser2) Innskuddspensjons-foretak3) Livsforsikrings-selskaper4) Banker5) Forvaltningsselskap for verdipapirfond|1)Pension fund,2) Defined contribution pension undertakings,3)Life insurance companies4)Banks5) Companies which manage securities funds|No|DC|It is mandatory to have a DC or a DB scheme|Occupational|1) IORP2) IORP3) Life4) Banking 5) UCITS|

|Statens Pensjonskasse|Pension fund|Statens Pensjonskasse is a pension fund administering pension schemes for state employees and certain other groups of employees||DB|Mandatory|Occupational|Excluded from IORP directive based on Art. 2.2. (a) and/or (c)|

|Book reserves (a)||Pension schemes based on contract where the benefits are paid by the employer/undertaking ||Usually DB (b)|voluntary|Occupational|Excluded from IORP directive based on Art. 2.2. (e)|

|Pensjonsfond (c)|pension fund|||DB|Mandatory if a pension fund as mentioned is established|Occupational|Excluded from IORP directive based on Art. 2.2 (c) and/or (d)|

||pension funds|pension schemes fixed by law for certain occupational groups (d)||DB|Mandatory|Occupational|Excluded from IORP directive based on Art. 2.2(c)|

||pension fund sponsored by State|Pension fund for medical parctitioners||DB|Mandatory|Occupational|Excluded from IORP directive based on Art. 2.2(c)|

||pension funds sponsored partly by the State|Pension funds administrating early retirement schemes||DB|Voluntary|Occupational|Excluded from IORP directive based on Art. 2.2(c)|

Note: The column "Art. 3? Y/N" indicates whether or not Article 3 of the IORP Directive applies. This article specifies that institutions for occupational retirement provision which also operate compulsory employment-related pension schemes which are considered to be social-security schemes covered by Regulations (EEC) No 1408/71 and (EEC) No 574/72 shall be covered by the IORP Directive in respect of their non-compulsory occupational retirement provision business.

Country-specific notes to the table:

Belgium (BE)

a) The legal forms possible until 01/01/2012 are: ASBL (Association Sans But Lucratif)/VZW (Vereniging Zonder Winstoogmerk), or AAM (Association d’Assurances Mutuelles)/OVV (Onderlinge Verenigingsvereniging). The new legal form since 01/01/2007 is the OFP (Organisme de Financement de Pensions/Organisme voor de Financiering van Pensioenen).

b) Voluntary opt-out in some industry-wide schemes under certain conditions.

c) Scope of schemes: employer, industry-sector or self-employed (some are organised by profession but not necessarily); an IORP may manage several types of schemes with different scopes.

d) Organisme de placement collectif en valeurs mobilières (OPCVM) / instelling voor collectieve belegging (ICBE): organismes de placement collectif publics à nombre variable de parts (SICAV) / openbare instellingen voor collectieve belegging met veranderlijk aantal rechten van deelneming (BEVEK).

e) The scope is limited to providing pension benefits to company managers.

Bulgaria (BG)

(a) Each insured person in a voluntary pension fund has an individual account in which his/her personal contributions are accumulated. In the same personal account contributions can be made by employers or third persons with prior consent from the insured person.

(b) The occupational pension schemes are managed within pension funds which are legal persons. The pension funds are established and managed by pension insurance companies, which are joint stock companies. The pension insurance companies manage separate pension funds for voluntary occupational schemes.

(c) The individual pension schemes are managed within pension funds which are legal persons. The pension funds are established and managed by pension insurance companies, which are joint stock companies. The pension insurance companies manage separate pension funds for voluntary individual schemes.

(d) The mandatory pension schemes are managed within pension funds which are legal persons. The pension funds are established and managed by pension insurance companies, which are joint stock companies. The pension insurance companies manage separate pension funds for mandatory schemes (universal and professional pension funds).

Czech Republic (CZ)

a) This product is based on an individual contract that can be concluded regardless of the client’s occupational status. However, there can be some occupational element in the sense that an employer can act as a third person contributing to the client’s account. In 2008, this was the case for approximately 25% of clients.

Denmark (DK)

a) For life insurance companies participation is mandatory and the scheme belongs to the occupational pillar when the scheme is part of a pension plan in a company.

Germany (DE)

a) In general voluntary. In some areas, there are collective agreements providing for obligatory occupational retirement provisions or financial incentives for employees for deferred compensation.

b) The insolvency coverage by the PSVaG (Pensions-Sicherungs-Verein Versicherungsverein auf Gegenseitigkeit) applies to this type of occupational retirement provisions (insolvency of the employer).

c) In general voluntary. In some areas, there are collective agreements providing for obligatory occupational retirement provisions.

d) Under certain circumstances, the insolvency coverage by the PSVaG (Pensions-Sicherungs-Verein Versicherungsverein auf Gegenseitigkeit) applies to this type of occupational retirement provisions (insolvency of the employer).

Ireland (IE)

a) The pension scheme is the institution for occupational retirement provision. Legal separation of pension fund assets from all other assets is achieved via the trust mechanism under which all pension schemes are set up.

Greece (EL)

a) Occupational Insurance Funds are independent legal entities. They are established on a voluntary basis in each company or sector(s) of employment on the initiative either of employees or employers or through an agreement between employees and employers as well as on the initiative of self-employed or independent professionals or farmers or their associations. Depending on the type of arrangement, Occupational Insurance Funds can provide benefits in kind or in cash, in the form of annuity or as a lump sum. Occupational Insurance Funds that provide retirement benefits operate on a funded basis (DC pension schemes).

b) In addition, also Directive 98/49/EC (safeguarding the supplementary pension rights) and Directive 2006/54/EC (equal opportunities) apply.

c) Group Insurance Contracts concluded between the employer and the insurance company in the sectors VII "management of group pension funds" or IX "works similar to social security".

d) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

Spain (ES)

a) Employers cannot pay contributions on behalf of members into this scheme.

b) The national legislation applicable is the Pension Plan and Fund Act (Texto Refundido de la Ley 8/1987, de regulación de Planes y Fondos de Pensiones) of 29 November 2002.

France (FR)

a) All these institutions are able to sell: (i) occupational pension schemes, in particular “Article 83” schemes (defined-contribution), “article 39” schemes (defined-benefit) or “contrats Madelin” schemes (defined-contribution); or (ii) individual life insurance (individual pension savings).

b) For occupational retirement provision, the institution can decide about the regulatory framework: life directive or IORP directive, with application of its article 4. The institution has to ask for a specific agreement if it wants to use the IORP directive. For individual retirement provision, the life directive applies.

Italy (IT)

a) Independent legal entity set up as a result of an agreement between employers and trade unions at industry level (also company, group, or regional funds are possible and have in fact been instituted).

b) Pension funds instituted by financial intermediaries (banks, insurance companies, etc) as segregated assets. They can host both occupational and personal schemes.

c) Pension funds instituted before 1993 as an independent legal entity.

d) Non-autonomous pension funds instituted before 1993 as book reserves within the balance sheet of an employer. When the company that sets up the pension fund is a bank or an insurance, which is the typical case, the banking directive or insurance directive applies.

e) Independent private entities operating social security schemes for several categories of self-employed, professional workers (such as lawyer, etc.).

f) Personal retirement plans based on individual life insurance companies.

Cyprus (CY)

a) There are company provident funds and industry-wide provident funds, which provide lump sum benefits.

b) There are employees´ pension funds (private companies, semi public organizations and local authorities) and pension funds for self employed (advocates and doctors).

c) These schemes have no legal personality. They are pay as you go pension schemes that provide a lump sum benefit and a monthly benefit for life.

d) These schemes have no legal personality. They are book reserve retirement bonus schemes that provide a lump sum benefit.

Latvia (LV)

a) There are closed pension funds which provide only occupational pensions and open pension funds which are allowed to operate both occupational and individual pensions.

b) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

c) This scheme is part of the state pension and contributions paid to the scheme are part of the social tax. The scheme is operated by the State social security agency. The assets of the scheme are managed by private asset managers (they are not IORPs). State funded pension scheme could be treated as part of the funded tier of statutory pensions.

d) Voluntary for those socially insured persons who were at age between 30 and 45 at 01.07.2001.

Lithuania (LT)

a) DB schemes shall be implemented only for individuals who are not subject to the Lithuanian social security and labour legislation, i.e. in case of cross-border activities.

b) No relevant prudential EU legislation applicable to the pension product. However, Directive 85/611/EEC (UCITS) is applied for the providers.

Luxembourg (LU)

a) Authorised and supervised by CSSF.

b) Authorised and supervised by Commissariat aux Assurances.

c) No relevant prudential EU legislation applicable to the pension product. To the provider: Directive 2002/83/EC for underlying insurance contracts, Banking Directive 2006/48/EC and UCITS directive (2001/108/EC).

Hungary (HU)

a) Since 1.1.2010, there is a performance guarantee equal to inflation.

b) Members are obliged to pay contribution. However the employer has the possibility to pay contribution on behalf of the member.

c) This is a special saving account with tax incentives. There is no relevant prudential EU legislation applicable to the pension product. To the provider: Banking Directive 2006/48/EC and UCITS directive (2001/108/EC).

Malta (MT)

a) A Retirement Scheme of a contractual nature consists of a separate pool of assets with no legal personality with the purpose of providing retirement benefits.

b) Currently the pension system in Malta is still based on state pension provisioning.

c) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

d) An employer cannot contribute to Personal Retirement Schemes that may be established in terms of the current legislation. These Personal Retirement Schemes would be funded solely by contributions from the individual.

Netherlands (NL)

a) Various legal forms are permitted, but pension funds almost exclusively prefer a Foundation.

b) As for occupational pension schemes, the social and labour law and the information requirements are the same for insurers and pension funds.

Poland (PL)

a) There are four legal forms of occupational pension plans in Poland which could be freely chosen by an employer as the plan sponsor.

b) “Pracowniczy fundusz emerytalny” is a Polish financial institution (fund) which operates in Poland and under the Polish law and its only two tasks are to accumulate and to administer contributions (premiums) from sponsoring undertakings for occupational pension purposes. This institution fulfils criteria for IORPs under Article 6a of the IORP Directive, so it can also operate cross-border in other Member States.

c) “Zarzadzajacy zagraniczny” is a foreign IORP which operates cross-border in Poland, in the meaning of the Polish law.

Portugal (PT)

a) These institutions are out of the scope of the IORP Directive because they are institutions for personal retirement provision. They are covered either by the Life or UCITS Directive or by the national pension fund legislation. The national pension fund legislation (one single Decree-Law), which always covered both occupational and individual schemes, was updated to reflect the requirements of the IORP Directive.

b) These institutions are out of the scope of the IORP Directive because they are institutions for personal retirement provision. They are covered by national pension fund legislation. This legislation (one single Decree-Law), which always covered both occupational and individual schemes, was updated to reflect the requirements of the IORP Directive.

c) Usually covers retirement benefits that are not tax qualified, e.g. early retirement programmes.

Romania (RO)

a) Personal, mandatory, minimum benefit established by Law, funded pension scheme with automatic enrolment.

b) Voluntary, unprotected, funded pension scheme.

c) In the national implementation.

Slovenia (SI)

a) May offer individual pension policies.

b) May offer individual pension policies and life insurance.

c) The mutual pension fund is not a legal entity. It may offer individual policies.

Slovakia (SK)

a) Mandatory for certain categories of employees (e.g. miners).

b) Occupational for certain categories of employees (e.g. miners).

Sweden (SE)

a) Voluntary, though most occupational pension is mandatory through collective agreements.

b) May offer life insurance (separate) as well.

c) Linked to companies who have technical provisions as DB book reserves (outside of IORP directive scope)

d) Companies recently try to set up book reserves even for DC schemes. The Swedish authorities have therefore initiated a discussion with the companies to begin in the near future. By law it is required that the book reserves must be secured. Normally this is done through credit insurance.

United Kingdom (UK)

a) The pension scheme is classed as the institution. As such there is no legal separation. Legal separation of pension fund assets from all other assets is achieved via the trust mechanism under which all pension schemes are set up.

b) Legally classified in UK as DB but has some guarantees and some money purchase elements.

Iceland (IS)

a) Pensions fund are in many cases based on profession, but some professions can choose in which pension fund they pay.

Liechtenstein (LI)

a) Beside the statutory pillar (old age, disability and survivors’ insurance; AHV), Liechtenstein has also a mandatory occupational pillar to supplement the statutory pillar. For each employee for whom an employer has the obligation to pay contributions to the social insurance (statutory pillar), the employer has also the obligation to pay to an occupational DB or DC scheme (beside some exceptions; minimum contributions are stipulated by law). The relevant law is the “Gesetz vom 20. Oktober 1987 über die betriebliche Personalvorsorge” (BPVG).

b) For an employee having the obligation to pay contributions to the social insurance (statutory pillar), only voluntary contributions can be made into a pension plan according to the “Gesetz vom 24. November 2006 betreffend die Aufsicht über Einrichtungen der betrieblichen Altersversorgung” (Pensionsfondsgesetz; PFG), with which directive 2003/41/EC was implemented. The mandatory part has to be paid into a pension plan according to the BPVG.

c) Insurance company (Versicherungsunternehmen, direkte Lebensversicherung).

Norway (NO)

a) The use of this kind of schemes is unknown and probable very limited.

b) Usually DB schemes based on contract and usually limited to providing pension benefits to company managers.

c) All pensjonsfond are established according to tax regulation before 1968. Pensjonsfond are without guaranteed benefits. The benefits are derived according to certain rules laid down in tax law on the basis of the size of the fund. Benefits from these pension funds are paid primarily in order to compensate employers/pensioners born before 1917 for reduced benefits from State pension scheme.

d) The pension schemes are fixed by legislation.

e) It is legally possible for pension funds to offer individual pension schemes to members.

[1] Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (Text with relevance for the EEA and for Switzerland), OJ L 166, 30.4.2004, p. 1–123

[2] Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems.

[3] Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community

[4] Council Regulation (EEC) No 574/72 of 21 March 1972 fixing the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and their families moving within the Community

[5] Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision, OJ L 235 , 23/09/2003 P. 0010 – 0021.

[6] Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008 on the protection of employees in the event of the insolvency of their employer OJ L 283, 28.10.2008, p. 36

[7] Judgment of the Court of 25 January 2007 (Carol Marilyn Robins and others v Secretary of State for Work and Pensions). C-278/05. ECR 2007 Page I-01053

[8] Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community, OJ L 209, 25.7.1998, p. 46–49.

[9] First Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance, OJ L 63, 13.3.1979, p. 1–18.

[10] Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance, OJ L 345, 19.12.2002, p. 1–51.

[11] Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA relevance), OJ L 335, 17.12.2009, p. 1–155.

[12] Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), OJ L 302, 17.11.2009, p. 32–96.

[13] Pre-contractual information for financial services, January 2008, available at http://ec.europa.eu/consumers/rights/docs/PCI_final_report_22Feb2008_en.pdf

[14] Communication from the Commission on Packaged Retail Investment Products, 30.4.2009, COM(2009) 204 final

[15] Green Paper on Corporate governance in financial institutions and remuneration policies, COM(2010) 284, available at: http://ec.e u ropa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_en.htm

[16] First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance, OJ L 228 , 16/08/1973 P. 0003 – 0019.

[17] Survey of Health, Ageing and Retirement in Europe, Mannheim Research Institute for the Economics of Aging (MEA), 2008

[18] Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security ( OJ L 6, 10.01.1979).

[19] Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (recast - OJ L 204 of 26.07.2006). It notably repeals Directive 86/378/EC (amended by Directive 96/97/EC) on occupational social security schemes ( OJ L 225, 12.08.1986).

[20] Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (OJ L 373 of 21.12.2004).

[21] The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001) 214 final.

[22] Commission vs. Belgium , Case C-522/04, Commission vs. Denmark , Case C-150/04.

[23] Case C-522/04.

[24] Dividend taxation of individuals in the Internal Market, COM(2003) 810 final.

[25] "The EU Market for Consumer Long-Term Retail Savings Vehicles" (BME Consulting, 15 November 2007); available at http://ec.europa.eu/internal_market/finances/docs/cross-sector/study_en.pdf

[26] "Study on Equity Release Schemes in the EU" (Institut für Finanzdienstleistungen, January 2009); available at: http://ec.europa.eu/internal_market/finservices-retail/docs/credit/equity_release_part1_en.pdf

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