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Member, Beacon International Group, Ltd.
BRUSSELS─The Comité Européen des Assurances said Tuesday that any changes in regulating occupational pension plans in Europe should ensure that all providers have a level playing field.
In its response to the European Insurance and Occupational Pensions Authority's first-round consultation on the Directive on Institutions for Occupational Retirement Provision, the Brussels-based CEA said it welcomes EIOPA's suggestion that the Solvency II directive for insurance companies be used as a benchmark for future governance requirements for institutions that provide occupational pensions.
Frankfurt, Germany-based EIOPA had invited comments on the European Commission's review of the IORP directive. The comment period ended Monday.
The European Commission has said it wants to establish one system of regulation for all pensions in Europe.
Similar rules for similar risks
“Occupational pension providers—whether they are life insurers, IORPs or mutual funds offering guaranteed benefits—are often in competition to provide customers with pension solutions,” the CEA said Tuesday in a statement. “Consequently, it is important to apply similar rules to products with similar risks,” it added.
“Consistent and appropriate regulation of all occupational pension providers is key to guaranteeing the protection of consumers and the continued viability and stability of the sector,” CEA Director General Michaela Koller said in the statement.
Pensions distinct from insurance
In its response to the consultation, however, the London-based National Assn. of Pension Funds, which represents U.K. pension plans, said it hoped EIOPA would persuade the European Commission to amend its plans to apply much of Solvency II, a risk-based capital regulatory regime, to the pensions sector.
“The NAPF has pointed out repeatedly that pensions are very different from insurance, largely because they are paid over the long term in a relatively predictable manner,” it said in a statement.