Technical advice for the review of the IORP II Directive

EIOPA's technical advice on the review of the IORP II Directive aims at ensuring that the reviewed directive can embrace the future while protecting the legacy.

In particular, EIOPA’s technical advice:

• proposes changes to keep the regulatory framework for IORPs relevant bearing in mind the ongoing shift from defined benefit (DB) to defined contribution (DC) pensions, and in relation to the environmental and socio-economic challenges facing society. Specific proposals are made on transparency of costs and charges and reflecting sustainability in investment decisions;
• recognises the need for existing DB IORPs to be properly regulated and supervised, including the appropriate monitoring of solvency risks and the sound management of liquidity risks;
• proposes ways to enhance the proportionality measures of the existing regulation and to reflect it in new standards.

Justin Wray, Head of Policy at EIOPA, explains what changes the pensions sector is experiencing, why it was necessary for EIOPA to review the directive and speaks about the key areas of the advice.

The technical advice is given in response to a call for advice from the European Commission. It follows a public consultation launched in March 2023. EIOPA has published the feedback statement and the resolution of comments as a response to the consultation.