Het ontstaan van een Europese pensioenunie

A European Pensions Union

Prof. Van Meerten observed:

• EU law takes precedence over national law;
• The EU is working towards a capital markets union. Pension forms part of this union;
• The EU is working towards a personal pension plan. For example, EU member states with a lesser developed pensions system, such as the former East bloc, may use this plan to build a market for pension products.

These observations mark the relevance of ‘Europe’ for pensions services in the Netherlands and abroad.

It is in the interest of the Dutch pensions industry to monitor developments in the EU to find opportunities and for risk management purposes. To illustrate the latter, prof. Van Meerten elaborated on the Hogan case. The European Court ruled that in case of bankruptcy of a company when pensions can no longer be paid out, the government will be liable for the pensions owed tot he employees of the bankrupt company.

According to the EU Charter of Fundamental Rights, a pension plan participant in the EU may invoke this charter if pensions are discounted – even if pension funds must lower their promised pensions pursuant to Dutch law. Prof. Van Meerten suggested that pension funds reserve money just in case a pension plan participant should invoke the EU Charter of Fundamental Rights if/when pensions are discounted.

De IORP in de praktijk. Een alternatief voor het APF?

IORP: an alternative fort he Dutch General Pension Fund?

Mr Van Leggelo showed how French asset manager Amundi profits from “Europe” to enlarge its pension services market share.

In France, Amundi has got a 50% market share for pension services. Expansion will need to take place in other European markets. The European IORP directive makes this expansion legally possible and easier.

Multinational companies wish to control the costs of their pensions liabilities. Carrying out a pension plan is increasingly more time consuming and expensive for companies. Outsourcing to an international, cost effective vehicle might ne the answer. Amundi set up a Luxembourg based IORP pensions service provider tob e able to carry out the multiple European pension plans for multinationals.

Europa, jongeren en pensioen

Europe, younger generation and pensions

Ms Gunaydin is chairman of the unions initiative to alert young people on the importance of pensions. This initiative is called “PensionLab”. In the Netherlands, the peensions syem is mandatory. With talks to rebuild the system to make it more robust, such a mandatory system needs to get the younger generation on board. Opportunities in “Europe” may infuence the younger generation.

The younger generation is defined as the agegroup of 18 – 39. They might work in different EU memberstates but portability of personal pensions across all EU member states is still not possible.

PensionLab suggests that the Dutch system makes for a pensions product to be used by an individual working in different EU member states, on a voluntary, not mandatory, basis.

Europa in relatie tot pensioen. Standpunten van de Pensioenfederatie.

Europe and pensions. Standpoints of the Dutch Federation of Pension Funds

The Dutch pensions system is unique among the other 27 EU member states. For example, collectivity and risk sharing are features of the pension funds whereas in France, these are features of the state pension.

In “Brussels”, pension funds are viewed as financial institutions with counsumers as their clients. In the Netherlands, the Dutch Federation of Pension Funds views pension funds as social institutions who service employees.

A concern is that monetary policy is made by the European Insurance and Occupational Pensions Authority in Frankfurt. Where lies the EU decision making power pertaining to pensions, in “Brussels” or in Frankfurt?

Pensioen en het Europese Parlement

Pensions and the European Parliament

Mrs. Van Nieuwenhuizen is member of the European Parliament. She is member of the parliamentary commission ECON which monitors economic and monetary policy of the European Union.

If measures are necessary to discount guaranteed pensions, this could influence the result of the general elections in the Netherlands in 2017. That’s because most of the active voters are 50 years or older and they will be impacted by such measures immediately.

In “Europe” the financial sector does not have a good reputation and pension funds, seen as part of the financial system, therefore neither, especially if guaranteed pensions aren’t met. It might ne an idea for pension funds to activate their mandatory pension plan members using fintach and apps that provide insight in the actual pension sistuation of each individual plan participant.

Pensioen en Europa

Pension and Europe

Mr Bouma is chairman of PensionsEurope. This is the European platform for pension providers. Legislation pertaining to pensions originates worldwide, such as the G20, or accounting standards of the IASB.

Dutch pensions legislation is derived from European directive IORP. This is the Institutions for Occupational Retirement Provision. Financing pensions is increasinly challenging due to the changing ratio between working people and the elderly who live longer than when the pension system was designed. This ratio is 28% in 2015 but 51% in 2050, according to OESO, which means that in 2050, a working person finances the pension of one pensioner. State pensions cannot finance this and so a complimentary pension system in addition to state pensions is needed in EU member states.