After having received 170 responses to their consultation on the review of the IORP Directive, the European Insurance and Occupational Pensions Authority (EIOPA) is planning quantitative impact studies (QIS) for its ‘holistic balance sheet’ proposal, the association’s president Gabriel Bernardino said.

The European Commission has asked EIOPA for advice on the review of the Institutions for Occupational Retirement Provision (IORP) Directive. EIOPA’s consultation on the matter closed in early January.

Speaking at an event organised by the Dutch Pension Federation, Bernardino emphasised that differences between IORPs and insurance products will be taken into account, as will differences between national pension schemes, such as the conditionality of the Dutch pension system, the employer covenants in the UK and the presence of pension protection funds.

EIOPA supports three principles for the valuation and capital requirements of IORPs: transparency, comparability and comprehensiveness. However, their ‘holistic balance sheet’ proposal is subject to further investigation, Bernardino added.

“The ‘holistic balance sheet’ approach we propose reflects the different means by which pensions throughout Europe provide security for their members. In some member states for example the sponsoring employer plays a key role and this should be recognised. In others pension protection schemes play a role. I have already mentioned the need to have regard to the position where benefits are genuinely discretionary.”

The first QIS will therefore test this proposal and EIOPA’s board is scheduled to decide on a framework for this impact study on 13 February.

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