Ομιλία – Παρουσίαση: Bruno Gabellieri, Secretary General, European Association of Paritarian Institutions (AEIP) Τίτλος παρουσίασης: «Opportunities and Challenges for IOPRs across Europe»

1. Opportunities and Challenges for IORPs across Europe
Bruno Gabellieri, AEIP Secretary General

2. www.aeip.net
www.aeip.net

3. AEIP currently has:
20 members from 12 European Countries
12 Task Force Members from 4 European Countries
80 million European citizens covered by AEIP members
1200 social protection providers represented
1300 billion assets under management (AuM)
AEIP is a Brussels-based advocacy organization,
representing Social Protection Institutions established and
managed by employers and trade unions on a joint basis
within the framework of collective agreements.
All AEIP members are:
Based in an EU Member States
Paritarian institutions
Non-for-profit
Long-term institutional investors

4. The characteristics of occupational pensions
o Occupational pensions are assessed on the basis of professional activity
o Occupational pension schemes are characterised by a social purpose and,
depending on the national strategy, can play a central role in old-age income
replacement
o Supplementary pensions provide additional retirement savings, complementing
statutory pensions and thus enhancing the income maintenance capacity of pension
systems
o As long-term investors, IORPs have the capacity to invest in socially and
environmentally sustainable areas

5. A very diverse
landscape for
IORPs in the EU

6. Competences of the EU over pensions
o Competences of EU: The EU legal framework covers some aspects related to
pensions, such as protection of rights in case of cross-border mobility, consumer
protection, gender equality and the single market for supplementary pensions.
Beyond this, the EU supports Member States’ efforts to ensure adequate and
sustainable pensions through the European Semester, the European Pillar of
Social Rights and the Open Method of Coordination (OMC) of mutual learning and
exchange of best practices.

7. Paritarian Institutions – Challenges
General Challenges:
o The evolution of the demographic situation in the EU – population ageing (less people in employment are funding a
systems that ensures coverage of more people)
o The growing workforce of non-standard workers who are not represented at all is an additional element which poses a
challenge to the paritarian model
o Slow economic growth & low interest rates environment – EU MSs are faced with the big challenge of financing their
social security systems in the medium and long-term
o Adequacy vs. Sustainability of Social Protection Systems (balance between social vs. economic)
Specific Challenges:
o Substantial decreases in trade union membership “de-unionization”
o Different situation in EU MSs – on average lower union density than EU14 average (14%), except Slovenia and Croatia
o Funded pensions often target of political decisions (e.g. rolling back of statutory funded schemes in Central and Eastern
Europe)
o Changing economic conditions (no predictability and need for adaptability)
o New forms of work – less likely to be unionized
o Highly competitive environment – European vs. Global markets

8. Policy Recommendations for enhancing the
role of IORPs
EU member states should:
o promote awareness of the choices and risks at pay-out, through financial education initiatives
o promote ways for enhancing coverage of occupational pensions (e.g. automatic enrolment)
o create tax and financial incentives for employees and employers to adopt supplementary
pensions that meet minimum quality requirements. These incentives should reflect the
diversity in characteristics of types of pensions in different Member States
o ensure that the available pay-out options adequately cover the longevity risk, taking into
account the national social protection system
o ensure that savers benefit from personalised advice before retirement on the sustainable use
of the capital accumulated
o Continue promoting cross-border investment by pension providers
o Set up national tracking services for pensions, for transparency and convenience of citizens

9. Policy Recommendations for enhancing the role
of IORPs
The EU should:
o give Member States the necessary flexibility to supplement prudential requirements for
the IORP II Directive, bearing in mind the national social, tax and labour law
o assess the implementation of the IORP II Directive before proposing any further change
with a horizontal regulatory framework
o support the development of a European tracking service for pensions in order to
enable citizens to have a comprehensive and comparable overview of pension
entitlements

10. Policy Recommendations for enhancing the role
of IORPs
The EU, Member States, social partners and relevant stakeholders should:
o Adopt a long-term and holistic approach to developing multi-tier pension systems
o Reflect on how to address issues such as gaps on the pension adequacy for specific
groups (e.g. women and non-standard workers)
o Reflect on how to address the growing number of non-standard forms of employment
o Develop clear, robust and science-based methodological tools on the impact of IORPs
on sustainable finance goals, including environmental and social goals
o Clarify how pension providers can take into account the impact of ESG factors on
investment decisions