The Pensioneer Trustee Company (Guernsey) Limited
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The European Union wants to encourage more EU citizens to save for an adequate retirement income by creating a truly internal European pan-European pension products (PEPP) market. EIOPA has been asked by the European Commission to provide advice on whether new legislation is needed to create on an internal market for the personal pension schemes and, if so, what measures should be proposed. In particular the Commission wants the advice from EIOPA to address ways in which to promote cross border personal pension schemes and to establish an EU-wide framework to address consumer protection issues. In a preliminary report produced in February 2014, EIOPA said it saw the pan-European pension as a product established on the basis of individual participation and sold on a retail basis. “EIOPA envisages that the PEPP will be a long duration retirement product clearly distinguishable from regular investment products,” it said in its consultation paper. “The features of these products are - or should be - specifically tailored to provide citizens with an income, as defined at national level, during the retirement stage (the decumulation stage of the product) of their lives, which is adequate in relation to the contributions paid into the product. “The capital accumulated in these products cannot, in principle, be encashed prematurely unless the retirement saver is willing to incur fiscal or other penalties.”
Transparency key EIOPA said it wants to create a simple, transparent, cost-effective and trustworthy pension product that would encouraging citizens to save for their retirement. To achieve this it proposes to create a harmonised legal framework which would ensure a level playing field between all providers; facilitate an EU-wide PEPP to consumers by removing existing barriers to cross-border business; and help create a multi-pillar approach to pension saving. It is seeking comments from interested participants by 5 October 2015.