EIOPA published the results of 2019 IORP stress test on 17 December 2019, and you can read PensionsEurope press release here. The stress test results confirm IORPs’ countercyclical behaviour. It is important that legislation continues to allow that, as IORPs have an important role in stabilising financial markets.
PensionsEurope is happy that EIOPA also used the cash flow analysis approach to assess the financial position of IORPs, as it sheds new and more relevant light on the financial position of DB and hybrid schemes. It gives more insight in the timing and size of cash flows and can be related to economic indicators such as GDP and consumption.
PensionsEurope is willing and ready to provide its expertise to EIOPA to further define its stress testing methodology in order to address all specificities of the IORPs sector.
PensionsEurope paper on Good Decumulation of Defined Contribution Pension Plans throughout Europe, published on 10 December 2019, explores the pros and cons of decumulation options, both in cases where there is no (or very limited) choice available to members at retirement and cases where members have choice. It continues the series of PensionsEurope publications on DC issues which include Principles for Securing Good Outcomes for Members of Defined Contribution Pension Plans throughout Europe, Pension Design Principles applied to modern Defined Contribution solutions and Key Principles of Good Governance for Workplace Defined Contribution Pension Plans throughout Europe. These papers are addressed to regulators and policymakers across the EU, researchers, and not least to social partners and those running pension plans.
A large group of financial services trade associations— including PensionsEurope — has raised concerns in a joint letter to the European Commission regarding the current application timeline for new EU disclosure rules for sustainable investments and sustainability risks.