IORP II will open a back door, German association says
Written by Sunniva Kolostyak
Implementing the new reporting requirements for funds will enable analogous risk management methods, the German pensions association ABA said during a government hearing.
ABA deputy chair Georg Thurnes spoke to the Finance Committee of the Bundestag during the IORP II hearing yesterday, saying it is sad that ABA’s long-standing demand to create an independent supervisory law for IORPs was not taken up by the government.
He said: “The present bill to implement the IORP II directive opens EIOPA’s back door for the introduction of Solvency II analogous methods in risk management, reporting requirements and supervisory practice. That’s exactly what the EU legislator did not want. The German legislator should also take that into account.”
ABA, together with PensionsEurope, has been actively fighting the legislation, saying minimum coordination should be the ideal, as a full harmonisation of EU and EIOPA clearly contradicts the idea of IORP II.
Occupational pension systems vary in the different member states and are closely linked with national labour and tax laws, and IORP II will allow for more synchronisation, ABA said.
Another concern for the association is that the regulation on cooperation with EIOPA does not mention whether it is possible for national ministries or parliaments to check whether the reporting is used appropriately.
Thurnes said: “If we really want to strengthen occupational pensions, as we are aiming for through the occupational pension strength law, then overregulation and inappropriate regulation for pension funds and organisations and must be avoided.
“IORPs need a sustainably reliable supervisory environment, embedded in national labour and social law.”