EIOPA analyses trends in cross-border IORPs

The European Insurance and Occupational Pensions Authority (EIOPA) published today a report on recent developments in the cross-border arrangements of Institutions for Occupational Retirement Provision (IORPs).

31 cross-border IORPs were active in the European Economic Area (EEA) at the end of 2021, representing a slight decrease from the 33 active cross-border IORPs reported at the end of 2020.

The analysis shows that:

• most cross-border IORPs are still concentrated in a small number of countries,
• the number of host countries grew, and now includes Italy and Sweden,
• Belgium remains the home country with the largest geographical spread of cross-border activities covering 14 countries, while the Netherlands continues to be host country to the largest number of active cross-border IORPs.

Cross-border IORPs within the EEA have approximately 93,000 members and beneficiaries and manage assets worth around €13 billion. While these numbers have risen substantially compared to last year’s figures (70,000 members and €11.3 billion of assets under management), cross-border arrangements represent only 0.2% of all members and beneficiaries and 0.4% of total assets of the region’s IORPs sector.

Looking at the type of cross-border IORPs, the report shows that Defined Benefit (DB) schemes are still widespread.

Furthermore, it reveals that multi-employer cross-border IORPs are on the rise. Almost half of the cross-border IORPs offered pension solutions to multiple employers at the end of 2021.

Finally, 12% of the cross-border IORPs do not provide any services to their home member states. These undertakings and the specific risks connected to their arrangement might require increased supervisory attention.

Go to the report

Background

This report is the second in a series of annual reports focusing on cross-border IORPs.