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Document 52014SC0104
COMMISSION STAFF WORKING DOCUMENT IMPLEMENTATION PLAN Accompanying the document PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the activities and supervision of institutions for occupational retirement provision (IORP II) (recast)
COMMISSION STAFF WORKING DOCUMENT IMPLEMENTATION PLAN Accompanying the document PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the activities and supervision of institutions for occupational retirement provision (IORP II) (recast)
COMMISSION STAFF WORKING DOCUMENT IMPLEMENTATION PLAN Accompanying the document PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the activities and supervision of institutions for occupational retirement provision (IORP II) (recast)
/* SWD/2014/0104 final */
COMMISSION STAFF WORKING DOCUMENT IMPLEMENTATION PLAN Accompanying the document PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the activities and supervision of institutions for occupational retirement provision (IORP II) (recast) /* SWD/2014/0104 final */
Introduction
The main
objectives of the revision of Directive 2003/41/EC on the activities and
supervision of institutions for occupational provision (IORP 2 Directive) are
to enhance the protection of members and beneficiaries of pension funds through
the improvement of governance rules for institutions, the increase of transparency
for members' and beneficiaries about their occupational
retirement entitlements
and facilitating cross-border activities of pension funds and schemes. The field of occupational
retirement provision is complex and can be very technical. Moreover,
even though some of the existing provisions have not changed as to their
substance (or have been deleted), a considerable number
of new provisions have been introduced in the legal text. Both the risks
relating to external actors (Member States, pension funds, and social partners)
and risks related to the actions to be taken by the Commission departments in
the transposition of the IORP 2 Directive are assessed in this implementation
plan. It should,
however, be noted that possible adjustments or modifications of the present
plan could be necessary to reflect future developments in the implementation of
the new directive.
General assistance by the Commission
The
Commission departments are conscious that co-operation with national
authorities must be developed at a very early stage. The following general
actions should be put in place as soon as possible after the adoption by the
co-legislators of the IORP 2 Directive to guide Member States in their
transposition efforts:
providing a contact point for
Member States to facilitate the dissemination of information regarding the
proposed legislation as well as transposition procedures (e.g., a
functional mailbox); and
up-dating DG MARKT’s web-site with
relevant information on the IORP 2 Directive.
Detailed risk assessment and proposed actions
The effective
implementation of the new requirements within the timeframe
The time-limit
for transposition of the IORP 2 Directive is 18 months after its publication in
the Official Journal of the European Union. The IORP 2 Directive
stipulates that Member States shall report on the effective implementation,
i.e., they shall notify the text of the main provisions of national law which
they adopted to transpose the Directive. The current IORP
1 Directive has triggered 25 infringement proceedings, i.e., 16
non-communication and, in particular, nine non-conformity cases. The IORP 2 Directive
includes a large number of new legal obligations. It will introduce novel
aspects to prudential legislation in the occupational pension sector. The
standards under the IORP 2 Directive are higher and stricter compared to the IORP
1 regime. Therefore, explanatory
documents are necessary for the Commission departments to help Member States in
transposing the IORP 2 Directive. A standard
Recital is introduced into the IORP 2 Directive "In accordance with the
Joint Political Declaration of Member States and the Commission of 28 September
2011 on explanatory documents, Member States have undertaken to accompany, in
justified cases, the notification of their transposition measures with one or
more documents explaining the relationship between the components of a
directive and the corresponding parts of national transposition instruments.
With regard to this Directive, the legislator considers the transmission of
such documents to be justified." Following the most recent experience
with the adoption of the insurance-related Omnibus 2 Directive, the IORP 2
Directive requires Member States to communicate to the Commission the text of
the main provisions of national law which they adopt in the field covered by
this Directive. Moreover, in
order to ensure smooth implementation and address potential risks linked to
this element of the IORP 2 Directive, the Commission departments will consider
the following actions: Box 1 Actions: Hold meetings with Member States to closely monitor the implementation process. The Expert group on banking, payments and insurance (insurance formation) could also serve as a forum for sharing information on implementation issues. The Commission departments can, on request, also organise bilateral meetings. This would allow the Commission departments to obtain informal oral and written feedback on the implementation (but also effectiveness) of the IORP 2 Directive; Focus on problems emerging during the preparation of the national measures and spread best practices amongst all Member States. Where questions are common, advisory guidance on how to deal with the issue may be issued by the Commission departments. The Commission departments will, on request, also organise bilateral meetings; and Set up training programmes addressed to national authorities. Where necessary, the Commission departments will collaborate with the European Insurance and Occupational Pensions Authority (EIOPA) which would be in a position to organise training courses.
Ensuring
an adequate monitoring and evaluation of the IORP 2 Directive in co-operation
with EIOPA
A full
evaluation of the effects of the policy choices could, however, only be
undertaken in the longer term. Some of the important policy choices will take
time to have any impact, e.g., cross-border pension funds. It would be
necessary to carry out such evaluation: a preliminary examination by EIOPA three
to four years after the entry into force (followed by an evaluation report by
the Commission five years after the adoption), on selected issues such as: § changes in
structure of the market (further shift towards DC-schemes); § changes in the
patterns of cross-border activity; § assessment of
the improvement in transparency and governance; § impact of the
changes regarding costs; or § possible future changes
in quantitative requirements for pension funds. In order to
ensure smooth implementation and address potential risks linked to this element
of the proposed Directive, the Commission departments will consider the
following actions: Box 2 Actions: Address issues relating to the evaluation of different topics in meetings with Member States during the implementation and also inform relevant stakeholders; Create a group of experts to serve as a forum for mutual learning and exchange of best practices on the implementation process (longer term perspective); Organise meetings with sector representatives in order to promote the benefits of the new regime; Foresee information campaigns among employers and pension funds through various channels immediately after the adoption of the IORP 2 Directive. Raising awareness will also make Member States more aware of the importance of a timely and proper transposition at the national level; Provide information tools (e.g. brochures) to inform Member States and all relevant stakeholders immediately after the adoption of the legislative instrument; Promote mutual learning and exchange of best practices between Member States on the implementation of the provisions by providing information in meetings with Member States. Co-operate with EIOPA. Annex 1 Detailed Implementation Plan A. Actions
by the Commission to provide general assistance to the Member States Objective || Action || Timing Disseminate information and facilitate transposition procedures || Providing a contact point for Member States || As soon as the proposal is adopted Disseminate all relevant information || Developing DG MARKT website || As soon as the proposal is adopted B. Actions
by the Commission to ensure smooth implementation and address potential risks Objective || Action || Timing Providing full coverage within the timeframe || Hold meetings with Member States to closely monitor the implementation process || Starting three months after the adoption of the proposal Focus on problems emerging during the preparation of the national measures || During the transposition period Spread best practices amongst all Member States || During the transposition period Set up training addressed to national authorities || During the transposition period Ensuring an adequate monitoring and evaluation of the IORP 2 Directive in cooperation with EIOPA || Address issues relating to the evaluation of different topics (such as changes in structure of the market (further shift towards DC-schemes); changes in the patterns of cross-border activity; assessment of the improvement in transparency and governance; or impact of the changes regarding costs) in meetings with Member States on the implementation process, paying specific attention to inform relevant stakeholders || Starting three months after the adoption of the proposal Create a group of experts to serve as a forum for mutual learning and exchange of best practices || At the end of the transposition deadline Organise meetings with sector representatives in order to promote the new regime || Immediately after the adoption of the proposal || Foresee information campaigns among social partners and pension funds through various channels immediately after the adoption of the IORP 2 Directive. Raising awareness will also make Member States more aware of the importance of a timely and proper transposition at national level || Starting three months after the adoption of the proposal Provide information tools (e.g. brochures) to inform Member States and all relevant stakeholders immediately after the adoption of the legislative instrument || Immediately after the adoption of the proposal Promote mutual learning and exchange of best practices between Member States on the implementation of the provisions in meetings with Member States || During the transposition period Co-operate with EIOPA || As soon as the proposal is adopted Annex
2 IORP 2 Directive - Implementation Time-line IORP 2 Preliminary examination by EIOPA Application A Application