Pensions: Council Agrees its Stance on pan-European Pension Product
The Council has agreed its negotiating stance on a proposal that would make it easier for people to put money aside for their old age.
On 19 June 2018, EU ambassadors asked the presidency to start negotiations with the European Parliament on the proposed 'pan-European pension product' (PEPP), a new class of personal pension scheme, as soon as the Parliament is ready to negotiate.
The draft regulation is aimed at providing greater choice for people who wish to save for their retirement, and at the same time boosting the market for personal pensions. According to the Commission, only 27% of Europeans between 25 and 59 years of age have subscribed to a pension product.
"The pan-European pension product will bolster our capital markets union plan, as it will help channel savings towards long-term investments. It will promote competition amongst pension providers, enabling them to sell pension products outside their national markets and giving savers more choice over how and where to place their savings."
Vladislav Goranov, minister for finance of Bulgaria, which currently holds the Council presidency
Under the proposal, PEPPs would have the same standard features wherever they are sold. They would be offered by a broad range of providers, principally insurance companies, banks, occupational pension funds, investment firms and asset managers.