Pensions - Articles - New draft IORP Directive published by EC

 The European Commission has today published the draft new Institutions for Occupational Retirement Provision (IORP) Directive providing updated rules on operating pension schemes across the EU.

 Deloitte, the business advisory firm, says employers will be relieved that the Directive has not imposed new funding rules that would increase pension scheme deficits.

 Feargus Mitchell, consulting partner at Deloitte, said:

 “The most contentious element of the IORP Directive – new funding rules that would have significantly increased pension deficits – has been dropped from the draft Directive. This aspect had generated considerable opposition across Europe and employers will be relieved that they will have more time to deal with existing pension deficits under current rules.

 “The draft Directive instead focuses on updated governance and disclosure requirements. Trustees and employers will need to re-assess their current processes and approach to these areas. While some trustees with more developed governance structures will already meet many of the new requirements, others will need to consider how they will be able to demonstrate compliance.”