New EU rules on occupational pension funds in force

The EU's revised Directive on occupational pension funds, known as IORP II, which came into force on 13 January, aims to increase savers' trust in work pension funds regardless of where in the EU they are based.

Occupational pension funds are financial institutions that manage collective retirement schemes for employers, in order to provide benefits to employees.

The new rules encourage and facilitate access to work pensions, improve and modernise the way pension funds are governed and enhance the clarity of information provided to pension funds members and beneficiaries.

"The new rules will increase savers' trust in occupational pension funds, regardless of the EU country they are operating in," said Valdis Dombrovskis, EC vicepresident responsible for Financial Stability, Financial Services and Capital Markets Union: "This is a positive development as these pension funds play an important role in building a genuine Capital Mar- ket Union and following through with the EU's Action Plan for Sustainable Finance."

The rules, which were adopted by the EU on 14 December 2016, make it easier for pension funds to do cross-border business and to invest in sustainable and longterm assets, strengthening their role in the Capital Markets Union.

The funds will also have to consider environmental, social and governments factors in their investment decisions.

The Commission says it will carefully examine the legislation adopted by the different Member States to make sure that they fully deliver the new standards set at the EU level.