PensionsEurope Overview of Cross-border Pension Funds
Today on 13 February 2019, PensionsEurope published a brochure on cross-border pension funds that has been prepared by PensionsEurope Standing Committee DC. It explores (i) what is a cross-border occupational pension fund, (ii) how does a cross-border occupational pension fund practically work, (iii) what are the main pros and cons of a cross-border occupational pension fund, and (iv) a case study how a company would implement a cross-border occupational pension fund for its employees.
PensionsEurope brochure concludes that a cross-border DC occupational pension fund can be an efficient and innovative solution for multinational corporations with different local pension schemes in the EU. It can be an opportunity to improve overall cost efficiency and to better monitor the different pension schemes with more centralized management and oversight. In addition, it could also help multinational corporations to allow easier mobility of their employees. However, companies putting in place cross-border schemes have to be well prepared and/or supported to handle the implementation process which can be complex and lengthy.