PensionsEurope has welcomed the publication of a report by the European Court of Auditors (ECA) alongside the responses from the European Commission and the European Insurance and Occupational Pensions Authority (EIOPA).

The report, released last week, found that EIOPA was in “no position to ensure consistent supervisory practices across the EU” due to the “low uptake of its initiatives by national authorities and the minimum harmonisation framework” it operates.

It also concluded that the European Union had been “unsuccessful” in boosting supplementary pensions to ensure adequate retirement income.

In response to the report, PensionsEurope said it shared the core conclusion - that despite EU-level initiatives, the development of cross-border occupational pensions and the uptake of the Pan-European Personal Pension Product (PEPP) remained very limited.

In addition, the association claimed that the findings reflected long-standing concerns that PensionsEurope and its members had voiced.

It stressed that the ECA’s acknowledgement that key obstacles lie in national social and labour laws rather than solely in EU legislation was “particularly important,” describing it as a “vital” starting point for any actions.

Indeed, PensionsEurope argued it was unrealistic to expect meaningful improvements without considering these national competences and complexities.

Its response also noted the report’s assessment of the PEPP and urged future decisions to be guided by realistic expectations and full stakeholder engagement.

Furthermore, PensionsEurope stated it did not support further centralisation of supervision at the EU level, especially without clear added value.

It explained that effective supervision was certainly essential but must complement, not override, well-functioning national supervisory frameworks.

Meanwhile, its response also expressed its support for efforts to improve transparency on pension costs, returns, and entitlements.

PensionsEurope secretary general, Matti Leppälä, commented on the report’s findings: “We appreciate the very clear and strong evaluation the ECA has made of many important issues important in supplementary pensions.

“We look forward to engaging constructively with the European institutions to ensure that future reforms are realistic, practical, proportionate, and supportive of strong, sustainable supplementary pensions for the people in Europe,” he concluded.

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