The European Commission (EC) is seeking views on how to make supplementary pensions more accessible, transparent, and effective for citizens across the European Union (EU), as part of its Savings and Investments Union (SIU) strategy.

The consultation is looking for industry views on a range of possible measures to support wider participation in occupational and personal pension schemes and to improve the tools available to citizens for tracking, comparing and understanding pension entitlements.

Exploring options to boost pension participation and awareness

As on part of this work, the consultation is exploring the potential role of automatic enrolment to boost participation.

Building on the EC's recently commissioned study on auto-enrolment, the consultation is seeking views on whether Member States should encourage the use of auto‑enrolment to nudge future pensioners in allocating part of their income (or savings) into a supplementary pension scheme.

In addition to this, it is exploring the approach that Member States could adopt to incentivise enrolment into supplementary pensions, to possibly identify best practices about factors that determine the effectiveness of auto‑enrolment.

This may involve examining various factors that can influence the success of auto‑enrolment, such as the availability of default options, the cost‑effectiveness of starting at earlier ages, the design of pay‑in or pay‑out phases, incentives for employers to facilitate the enrolment of their employees and the type of pension schemes used for auto‑enrolment, including existing occupational pension schemes and other pension products used in the workplace context.

The EC is also considering best practices in relation to practical aspects, such as the eligibility of schemes for auto‑enrolment, the eligibility of workers/employees, the role of taxation, the duties of employers or professional workers, the enrolment process, opt‑out options, transparency, and safeguards.

The consultation is also gathering views on the development of national pension tracking systems and pension dashboards to provide clearer individual information and stronger data for policymaking.

Gathering industry insight ahead of the IORP II and PEPP review

In addition to this, the consultation invited stakeholders to comment on the review of the directive on the activities and supervision of Institutions for Occupational Retirement Provision (IORP II Directive).

The EC said that the main aim of this part of the consultation is to explore how streamlining the framework for supplementary pension provision can increase trust, advance better investor returns, while increasing the risk management capacity for doing so, and create more transparency on cost and returns.

It is also asking for reflections on whether some or all the rules of the directive, including its envisaged improvements, might be relevant for supplementary pension providers beyond those falling within the current scope of the directive and not covered by any other piece of secondary legislation at the level of the EU.

Indeed, in the consultation, the EC suggested that expanding the scope of the Directive could help ensure greater consistency in the level of protection afforded to members and beneficiaries, in particular for employment‑related schemes, across different types of providers.

In light of the limited cross‑border provision, the consultation is also exploring whether the current framework allows IORPs to operate smoothly across borders.

In particular, the EC is looking at whether tax obstacles continue to hinder cross‑border provision of occupational pensions and whether further EU action is needed to address these barriers.

Additional questions focus on the level playing field across providers, the adequacy of information requirements for members and beneficiaries, and the potential inclusion of institutions for retirement provision in national pension tracking systems to improve transparency.

The consultation will also inform the EC's review of the Pan-European Personal Pension Product (PEPP) framework, with further information sought on the obstacles to uptake of the PEPP and how it broader use could be encouraged.

As part of this, the consultation is collecting information on whether the PEPP regulation should be reviewed to introduce a streamlined and accessible default option, to complement existing Member States’ pay‑as‑you‑go and occupational pension systems.

In addition to this, the EC asked whether the appeal and usability of the PEPP could be improved by simplifying product features, facilitating digital onboarding, ensuring cost‑effectiveness, and removing barriers to participation across the EU.

The consultation also explores PEPP’s potential role as a default option for workplace auto‑enrolment schemes, and whether additional investment options should continue to be offered in addition to the Basic PEPP.

The consultation closes on 29 August 2025, with the insights gathered set to inform a package of measures to be presented in the fourth quarter of 2025.

As part of its commitment to evidence-based policymaking, the EC launched a broader call for evidence alongside the targeted consultation, giving parties the opportunity to submit general comments, opinions and views on how to improve the current framework for supplementary pensions.

Respondents are invited to submit their comments to the call for evidence by 21 July 2025.

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