PensionsEurope believes that while social security and workplace pensions, often supported by a supportive tax treatment, do and should continue to provide the bulk of the retirement income, voluntary personal pensions (including PEPP) can be needed and useful, especially to provide pensions for those who don’t have access to adequate workplace pensions and as a further way to improve retirement resources and contribute to securing the future adequacy and sustainability of pensions.
It can also prove to be useful when there is poor security for existing personal pension products or when existing products are not attractive enough. PensionsEurope stresses the importance to adequately define the scope of voluntary personal pensions and clearly differentiate them from workplace pensions.
Regarding the harmonization of existing PPPs, we are quite skeptical about the feasibility. Where PPPs are nowadays provided by EU-regulated institutions, relevant Directives or Regulations already deal with the major issues such as governance, conflict of interest or consumer protection. Where PPPs are not provided by EU-regulated institutions, these regulatory gaps should be closed.
After the European Commission’s White Paper on Pensions interest is growing in EU pension tracking services. Such a tracking system should give European citizens an overview of their pension entitlements in the various European countries where they have accrued pensions. In several European countries a tracking system for pension rights is present. However, a system on a pan-European scale is not yet in existence.
The European Commission initiated a project to support the development of a tracking service. They set out a call for the proposal in 2012. Following this, a consortium of PGGM, MN Services, APG, Syntrus Achmea (The Netherlands), PKA (Denmark) and Finnish Centre for Pensions (Finland) was awarded to cooperate with the European Commission on this project. The project started June 1st 2013 and ends in March 2015. The goal of the project is to make a high level design and give recommendations for the development of a pan European pension tracking service and to focus on feasible solutions. The Consortium is called TTYPE; “Track and Trace your pension in Europe”.
The Consortium is currently working on the research by getting information through a EU wide survey, through meetings and interviews with external experts and by getting in touch with organizations that have expertise in specific domains to give their view on possible solutions. If you would like to share your views regarding tracking systems, please contact us and we can put you in contact with them.