Written by David Eatock (1st edition),
Europe’s population is ageing, due to people living longer and having fewer children, putting increased pressure on pension systems. This has led to reforms to make public pensions more sustainable – and often less generous – in future. To support retirement incomes, the European Commission’s 2012 pensions white paper called for more opportunities for citizens to save in safe and good-value complementary pensions.
The proposed framework for a pan-European personal pension product (PEPP) aims to encourage the development of personal pensions (that is, voluntary individually funded pensions) in Europe, to help support retirement saving and strengthen the single market for capital by making more funds available for investment. Generally the proposal is considered a welcome extra option to support retirement savings and investment. However differing national pension systems and tax treatments are noted as challenges, although the Commission has also issued a tax recommendation.
|Proposal for a regulation of the European Parliament and of the Council on a pan-European personal pension product (PEPP)|
|Committee responsible:||Economic and Monetary Affairs (ECON)||COM(2017) 343, 29.6.2017, 2017/0143 (COD)
Ordinary legislative procedure (COD, Parliament and Council on equal footing – formerly ‘co-decision’)
|Rapporteur:||Sophia in ‘t Veld (ALDE, The Netherlands)|
|Brian Hayes (EPP, Ireland
Renato Soru (S&D, Italy)
Ashley Fox (ECR, United Kingdom)
Bas Eickhout (Greens/EFA, The Netherlands)
Gerolf Annemans (ENF, Belgium)
|Next steps expected:||Initial discussions in committee|