On the Occupational Pensions Directive (Sharon Bowles MEP)

Sharon Bowles MEP <info@sharonbowles.org.uk>

On the Occupational Pensions Directive

November 14, 2005 12:00 AM
By Sharon Bowles MEP in European Parliament

We all agree with the Commissioner that increasing the uptake of pensions is of paramount importance, especially in relation to voluntary pensions, whether by virtue of this directive or through any other means. However, incentives to take up pensions, as he has quite rightly said, remains a competence of the Member States as these may be linked with the tax and benefits systems. I am not proposing that there should be any change to that. Nevertheless, it is important to share best practice. Could the Commission therefore indicate whether it is already monitoring incentives or has plans to do so? Can it envisage a mechanism through which best practices can be shared and encouraged?

In the context of cross-border provisions, which we want to encourage in order to achieve a better and more vibrant pensions market, public confidence in all regulators and underlying guarantees - and not just in those of one's own state - is very important. It is also important, especially for schemes relating to the self-employed, that it is understood that the information provided by the different countries should be comparable. Article 9 of the directive requires that members be given sufficient information on risks. Article 10 requires that the annual accounts should give a true, fair and comprehensive view. Other articles provide that members should have access to those accounts. However, this raises the question of what constitutes sufficient information, and whether account will be taken of the differences between prevailing practices in Member States, or at least whether potential investors will be alerted to the differences that may exist in areas in which they are not comparing like with like.

Clearly it is also important for the solution found to this not to result in a multiplication of regulation and for CEIOPS to take that into account in any forthcoming protocols.