European Insurance and Occupational Pensions Authority (EIOPA) chair, Gabriel Bernardino, has called for further pan-European pension reforms to ensure that EU citizens receive adequate and sustainable pensions.

Speaking at EIOPA’s 10th Anniversary Conference, Bernardino said there was an “urgency” to deliver adequate and sustainable pensions to EU citizens, and that there had not been enough progress in this area.

“If we want to have a positive impact on pensions adequacy in Europe, we need to walk the extra mile and create conditions at national and European levels to incentivise the creation of more funded complimentary private schemes,” Bernandino stated.

“While maximum impact could be achieved with the implementation of auto-enrolment mechanisms, the forthcoming review of IORP directive will also be a great opportunity to implement a fresh and more ambitious agenda.”

Bernardino warned that incremental change was not sufficient, and a sense of urgency was required.

To build on the Pan-European Personal Pension Product (PEPP), he called for the creation of an optional pan-European framework for occupational pensions to benefit from economies of scale.

He also urged the development of the IORP directive to focus on the protection of members and beneficiaries in the context of defined contribution schemes, which he described as the “future market reality".

To adapt to a more digitalised age, Bernardino called for the adjustment of governance and transparency requirements, and streamlining and applying them in a more proportionate manner.

Finally, he stressed the importance of ensuring that the prudent person investment principles have a clear focus on environmental, social and governance (ESG) risk factors.

“Insurance and pensions can play a critical role in delivering adequate safe and sustainable pensions to EU citizens,” Bernardino said.

“Incremental change is not sufficient though, we need a sense of urgency to embark on a true paradigm shift.”

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