opinion parliamentary committee draft, 11 May 2026
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (PEPP)
Document EMPL-PA-787853 · (COM(2025)0840 – C10 0307/2025 – 2025/0363(COD))
Committee on Employment and Social Affairs · Rapporteur: Liesbet Sommen
AI:In short
The Committee on Employment and Social Affairs gives its draft opinion on the Commission proposal to amend Regulation (EU) 2019/1238 on the pan-European Personal Pension Product (PEPP). It proposes amendments to keep PEPPs complementary to public and occupational pensions, respect member states' competences, and improve cost transparency and consumer protection. It proposes an annual EU Pension Forum, a benchmark-based approach to costs, a 1% annual cost cap for the Basic PEPP, and protection mechanisms for the Basic PEPP. It also proposes rules for workers with discontinuous careers and coverage of PEPP by pension tracking systems. It deletes the tax treatment provision and the workplace auto-enrolment provisions, and extends the application date to two years after entry into force.
Position. The rapporteur proposes amendments to the Commission proposal to keep PEPPs complementary to public and occupational pensions, respect member states' competences, strengthen cost transparency and consumer protection, cap Basic PEPP costs at 1% per year, add protection mechanisms and rules for discontinuous careers, and create an annual EU Pension Forum.
Key points
- States that supplementary pensions must complement, not undermine, public and occupational pension systems, which remain the cornerstone of social protection in the member states.
- Says the development of PEPPs must respect member states' competences in the organisation of pension systems, including taxation and labour law, and that social partners must be actively involved.
- Aims to ensure PEPPs deliver adequate, safe and transparent retirement outcomes, with clearer rules on cost transparency, comparability and value for money, and reaffirms the prudent person principle.
- Calls for tackling the gender pension gap and improving financial awareness, including for interim workers, self-employed persons, platform workers and people with fragmented careers.
- Proposes an annual European Union Pension Forum bringing together member states, EU institutions, social partners and stakeholders to exchange best practices on financial and social aspects of pensions.
- Requires the Basic PEPP to include at least one protection mechanism: capital protection at the end of the accumulation phase, a minimum real return guarantee, or a return linked to a prudent benchmark.
- Sets the total annual costs and charges of a Basic PEPP at no more than 1% of accumulated capital per year, and empowers the Commission to set a lower maximum after consulting EIOPA.
- Requires PEPP providers to give temporary agency workers, students, platform workers and others with discontinuous careers an automatic low-cost structure, no entry, exit or transfer fees, preservation of accrued rights and a defensive default allocation.
- Provides that where national personal pension products carry mandatory minimum protection or return guarantees, PEPPs distributed there must not provide a lower level of protection.
- Requires pension tracking systems, where in place, to cover PEPP accrued entitlements and allow comparability of all pension entitlements, distinguishing guaranteed from non-guaranteed components and showing administrative costs.
- Deletes the provision granting PEPPs tax treatment no less favourable than other personal pension products, and deletes the workplace auto-enrolment provisions.
- Extends the application of the Regulation to two years after entry into force and requires the Commission's evaluation to give equal consideration to the social dimension of pension provision.
Who is affected
- PEPP providers and distributors: must meet product oversight, cost transparency and value-for-money requirements.
- PEPP savers: gain clearer cost information, comparability and protection mechanisms for the Basic PEPP.
- Workers with discontinuous careers, including temporary agency workers, students and platform workers: get low-cost PEPP structures and preservation of accrued rights.
- Member states: retain competence over pension system organisation, taxation and labour law.
- Social partners: to be involved in pension system organisation and in the annual EU Pension Forum.
Figures and deadlines
- 1% of accumulated capital per year: maximum total annual costs and charges of a Basic PEPP.
- two years after entry into force: date from which the Regulation applies.
- five years after the application date, and every five years thereafter: timing of the Commission's evaluation.
Legal basis. Article 5 of the Treaty on European Union (TEU), cited on subsidiarity.
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Text 321 paragraphs
The revision of the Regulation on the pan-European Personal Pension Product (PEPP) could offer an opportunity to strengthen complementary retirement savings in the European Union, while ensuring that such instruments remain firmly anchored in their social purpose. In the context of demographic ageing, changing labour markets, working in different Member States and increasingly fragmented careers, supplementary pension solutions can play a supportive role in enhancing retirement adequacy. However, they must complement—and not undermine—robust public and occupational pension systems, which remain the cornerstone of social protection in the Member States.
The Savings and Investments Union (SIU) seeks to create better opportunities for EU citizens by improving the way savings are channelled into investments that support Europe’s strategic priorities and economic resilience, as also highlighted in the Draghi report on EU competitiveness. I fully support the purpose of the SIU goal of fostering European growth and innovation, while ensuring that the use of long-term pension savings must remain focused on providing citizens with adequate, secure, and sustainable retirement income.
From an EMPL-perspective, it is essential that the development of PEPPs fully respects Member States’ competences in the organisation of pension systems, including taxation, and labour law. At the same time, it is crucial that we strengthen the active involvement of social partners in the organisation of pension systems.
A central objective of this opinion is to ensure that PEPPs deliver adequate, safe and transparent retirement outcomes for savers. It should reinforce consumer protection by introducing clearer rules on cost transparency, comparability and value for money, including simplified and comprehensible disclosure of fees. it is equally important to reaffirm the central role of the prudent person principle in the management of pension savings. In addition, the draft report highlights the importance of tackling the gender pension gap and improving financial awareness among citizens.
The establishment of an annual European Union Pension Forum is proposed as a structured platform bringing together Member States, Union institutions, social partners and relevant stakeholders. This forum would facilitate the exchange of best practices and evidence on both the financial and social aspects of pension systems, including adequacy, coverage of non-standard workers, inequality and the interaction between public, occupational and personal pensions. Ensuring the active involvement of social partners, in line with national practices, will be essential to foster balanced and informed discussions and to support evidence-based policymaking at Union level.
Finally, by reinforcing both the social and economic dimensions of supplementary pensions, this opinion aims to contribute to a more inclusive, resilient and sustainable European pension landscape, consistent with the principles of the European Pillar of Social Rights.
AMENDMENTS
The Committee on Employment and Social Affairs submits the following to the Committee on Economic and Monetary Affairs, as the committee responsible:
Amendment 1
Proposal for a regulation
Recital 1
| Text proposed by the Commission | Amendment |
|---|---|
| (1) In view of the Union’s ageing population and the rising dependency ratio, strengthening complementary sources of retirement income has become indispensable to preserve intergenerational solidarity, social cohesion and the long-term stability of multi-layered pension systems across the Union. | (1) In view of the Union’s ageing population and the rising dependency ratio, strengthening complementary sources of retirement income has become indispensable to preserve intergenerational solidarity, social cohesion and the long-term stability of multi-layered pension systems across the Union. The promotion of personal pension products should complement possible gaps but not substitute, well-functioning public and occupational pension schemes. |
Read the rest (309 paragraphs)
Or. en
Amendment 2
Proposal for a regulation
Recital 1 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1 a) In accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union (TEU), the organisation of pension systems remains primarily a competence of the Member States. This regulation should therefore fully respect Member States’ competences in the organisation of pension systems, including taxation and labour law. |
Or. en
Amendment 3
Proposal for a regulation
Recital 1 b (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1 b) Many citizens in the Union, including vulnerable groups such as interim workers, self-employed persons, platform workers and individuals with fragmented careers, would benefit from enhanced pension literacy and a better understanding of the need to build up adequate retirement savings and of the functioning of personal pension products. Strengthening this understanding can support broader participation in supplementary pension schemes and contribute to more adequate retirement outcomes. |
Or. en
Amendment 4
Proposal for a regulation
Recital 1 c (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1 c) Without prejudice to Member State competences, Union-level coordination, including the exchange of best practices and the development of common communication tools, may contribute to improving awareness and understanding of personal pension products across the Union. |
Or. en
Amendment 5
Proposal for a regulation
Recital 1 g (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1 g) The development and distribution of PEPPs should not adversely affect the adequacy of retirement income, in line with Principle 15 of the European Pillar of Social Rights. |
Or. en
Amendment 6
Proposal for a regulation
Recital 1 i (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (1 i) Where appropriate, indicators derived from the Social Scoreboard of the European Pillar of Social Rights should be used to evaluate the impact of PEPPs. |
Or. en
Amendment 7
Proposal for a regulation
Recital 2
| Text proposed by the Commission | Amendment |
|---|---|
| (2) While the organisation of pension systems remains a national competence, the adequacy and financial sustainability of pensions are of common concern for the stability and cohesion of the Union. Ensuring that citizens have access to well-designed personal pension products contributes both to individual financial security and to the resilience of the Union’s economy. | (2) While the organisation of pension systems remains a national competence, the adequacy and financial sustainability of pensions are of common concern for the stability and cohesion of the Union. Complementary occupational and personal pension arrangements can contribute to retirement income, provided they adhere to robust standards of governance, transparency and consumer protection. In this context, it is important to reinforce the role, autonomy and involvement of social partners, allowing them to develop effective occupational pension arrangements through collective agreements. |
Or. en
Amendment 8
Proposal for a regulation
Recital 2 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (2 a) In accordance with Principle 2 of the European Pillar of Social Rights and the EP Report on the gender pay and pension gap in the EU: state of play, challenges and the way forward, and developing guidelines for the better evaluation and fairer remuneration of work in female-dominated sectors (2025/2038(INI)), this Regulation should contribute to equality between women and men, including by addressing the gender pension gap. |
Or. en
Amendment 9
Proposal for a regulation
Recital 4
| Text proposed by the Commission | Amendment |
|---|---|
| (4) Personal pensions are a key link between long-term savers and long-term investment opportunities, helping to deepen capital markets and expand the supply of stable funding for the real economy. Pensions funds are an important category of institutional investors that can help financing productive investments, supporting growth, innovation and the green and digital transitions, which will create better job opportunities and higher productivity. | (4) Personal pensions are a key link between long-term savers and long-term investment opportunities, helping to deepen capital markets and expand the supply of stable funding for the real economy. Pensions funds are an important category of institutional investors that can help financing productive investments, supporting growth, innovation and the green and digital transitions, which will create better job opportunities and higher productivity. However, all kind of measures intended to boost pension funds’ engagement in capital markets should comply with the prudent person principle and ensure that the interests of beneficiaries remain the primary consideration. |
Or. en
Amendment 10
Proposal for a regulation
Recital 5
| Text proposed by the Commission | Amendment |
|---|---|
| (5) The Savings and Investments Union (SIU) announced by the Commission in its Communication of 19 March 20153 aims to enable citizens to save and invest for their future, channel investments towards the priorities of the Union, deepen integration and scale in Union’s capital markets, and ensure effective supervision across the single market. Among those four strands, helping citizens save and invest for their future is at the heart of the SIU’s ambition. Ensuring that Union citizens can build adequate retirement income is one of the most concrete ways in which the Union can make a difference in people’s lives. The work on supplementary pensions, and in particular on personal pensions, embodies that citizen-centred approach. The pan-European Personal Pension Product (PEPP) is designed to give Union citizens access to a simple, transparent, and portable product that they can trust, helping them to save with confidence and to plan for their retirement wherever they live or work in the Union. By revitalising the PEPP framework, the Union seeks not only to strengthen citizens’ financial security but also to channel long-term savings towards productive investments that support the growth, resilience, and green and digital transitions of the Union. | (5) The Savings and Investments Union (SIU) announced by the Commission in its Communication of 19 March 20153 aims to enable citizens to save and invest for their future, channel investments towards the priorities of the Union, deepen integration and scale in Union’s capital markets, and ensure effective supervision across the single market. Among those four strands, helping citizens save and invest for their future is at the heart of the SIU’s ambition. While supporting the development of the Capital Markets Union, this Regulation should not undermine the primary objective of ensuring adequate, safe and sustainable retirement income for citizens. The work on supplementary pensions, and in particular on personal pensions, embodies that citizen-centred approach. The pan-European Personal Pension Product (PEPP) is designed to give Union citizens access to a simple, transparent, and portable product that they can trust, helping them to save with confidence and to plan for their retirement wherever they live or work in the Union. By revitalising the PEPP framework, the Union seeks not only to strengthen citizens’ financial security but also to channel long-term savings towards productive investments that support the growth, resilience, and green and digital transitions of the Union. |
| 3 Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions of 19 March 2025, COM(2025) 124 final. | 3 Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions of 19 March 2025, COM(2025) 124 final. |
Or. en
Amendment 11
Proposal for a regulation
Recital 9
| Text proposed by the Commission | Amendment |
|---|---|
| (9) Tax incentives play an important role in encouraging the take-up of personal pension products in several Member States. Tax incentives for personal pension products can take different forms. In many Member States, the contributions paid for personal pension products qualify for some form of tax relief. Similarly, in many Member States, the investment results of the personal pension products are not subject to tax, either on the basis of an explicit exemption or de facto exemption, if the provider is subject to tax but can deduct the dotations to the pension reserve from the tax base. Tax incentives may also be granted in the decumulation phase, by applying a favourable tax rate to the out-payment of the personal pension. The national treatment principle applies to PEPP savers. Therefore, it should be possible for a PEPP that is objectively comparable to a personal pension product marketed in a given Member State to benefit from the same tax relief granted to the personal pension product in that Member State. That should also apply where the PEPP is provided by a provider from another Member State. The same no less favourable treatment should also apply to measures under national law relating to other incentives for personal pension products or measures having an equivalent purpose or effect. | (9) Tax incentives play an important role in encouraging the take-up of personal pension products in several Member States. However, Taxation remains a core competence of Member States. Any measures relating to the tax treatment of PEPPs should respect national fiscal sovereignty and avoid direct or indirect harmonisation. |
Or. en
Amendment 12
Proposal for a regulation
Recital 10
| Text proposed by the Commission | Amendment |
|---|---|
| (10) To foster the uptake of PEPPs, it is essential that a PEPP provides value for money to savers and is therefore attractive and competitive. To ensure that potential PEPP providers design products in line with those objectives, the application for registration of a PEPP should demonstrate capacity to comply with the product oversight and governance requirements and show how the product is designed to provide value for money to PEPP savers. | (10) To foster the uptake of PEPPs, it is essential that a PEPP provides value for money to savers and is therefore attractive and competitive. To ensure that potential PEPP providers design products in line with those objectives, the application for registration of a PEPP, with all its options, should comply with the product oversight and governance requirements and show how the product is designed to provide value for money to PEPP savers. |
Or. en
Amendment 13
Proposal for a regulation
Recital 18
| Text proposed by the Commission | Amendment |
|---|---|
| (18) Article 42 of Regulation (EU) 2019/1238 requires that PEPP providers distribute the Basic PEPP if they also want to distribute alternative variants. That requirement constraints some providers’ ability and interest in distributing PEPPs, as the Basic PEPP may not fit with their business model or strategy. In addition, the current limitation to a maximum of five alternative options restricts providers’ ability to design products that reflect the preferences, circumstances and risk profiles of savers. Allowing providers to determine the number and nature of investment options would enable them to offer more tailored solutions, including personalised PEPPs suited to workplace arrangements or auto-enrolment. It is therefore necessary to provide for greater flexibility to PEPP providers while ensuring that transparency, comparability and consumer protection remain safeguarded through appropriate disclosure and product governance requirements. | (18) Article 42 of Regulation (EU) 2019/1238 requires that PEPP providers distribute the Basic PEPP if they also want to distribute alternative variants. That requirement constraints some providers’ ability and interest in distributing PEPPs, as the Basic PEPP may not fit with their business model or strategy. In addition, the current limitation to a maximum of five alternative options restricts providers’ ability to design products that reflect the preferences, circumstances and risk profiles of savers. Allowing providers to determine the number and nature of investment options would enable them to offer more tailored solutions. It is therefore necessary to provide for greater flexibility to PEPP providers while ensuring that transparency, comparability and consumer protection remain safeguarded through appropriate disclosure and product governance requirements. |
Or. en
Amendment 14
Proposal for a regulation
Recital 19
| Text proposed by the Commission | Amendment |
|---|---|
| (19) Article 45(2) of Regulation (EU) 2019/1238 requires that the Basic PEPP is subject to a cap on costs and fees of 1 %, while Article 34(2) of that Regulation obliges a PEPP provider or PEPP distributor to provide advice prior to the conclusion of a Basic PEPP contract. Those requirements have raised concerns among potential providers and distributors, as those requirements are deemed to limit the commercial viability of offering PEPPs, including through digital channels. Furthermore, the fixed 1 % cap on fees is not necessarily the most effective way to protect savers and beneficiaries, and does not reflect a proportional relationship between the benefits and returns offers to savers, the expenses borne by providers, and the fees charged. Providers often incur losses in the early years of a contract, when acquisition and setup costs are high, while savers may be disadvantaged by a fee cap in later years as their accumulated capital gros and the absolute costs charged increase, even though less management effort is required. The 1% fee cap may also lead to an unlevel playing field due to differences in VAT treatment across Member States. Therefore, to promote the uptake of the PEPP, and ensure a sustainable, high-quality product, it is necessary to remove those requirements. To preserve consumer protection and ensure that the Basic PEPP remains a simple product suitable for retirement purposes, it should be designed with an embedded life-cycle investment strategy, providing a suitable balance between growth and risk mitigation. For the same reason, the assets of the Basic PEPP should be invested predominantly in listed and non-complex assets within the meaning of Article 25(4), first subparagraph, of Directive 2014/65/EU of the European Parliament and of the Council7 . To promote diversification while maintaining simplicity, providers of the Basic PEPP should be allowed to allocate a small portion of assets, not exceeding 5 %, to other financial instruments, including alternative assets. | (19) Article 45(2) of Regulation (EU) 2019/1238 requires that the Basic PEPP is subject to a cap on costs and fees of 1 %, while Article 34(2) of that Regulation obliges a PEPP provider or PEPP distributor to provide advice prior to the conclusion of a Basic PEPP contract. To promote the uptake of the PEPP, and ensure a sustainable, high-quality product, it is necessary that the total costs of a Basic PEPP should not exceed 1 % of the accumulated capital per year. The Commission should be empowered to adopt delegated acts, after consulting EIOPA, to set a lower maximum cost level where this is justified by market developments and the need to ensure a high level of consumer protection. To preserve consumer protection and ensure that the Basic PEPP remains a simple product suitable for retirement purposes, it should be designed with an embedded life-cycle investment strategy, providing a suitable balance between growth and risk mitigation. For the same reason, the assets of the Basic PEPP should be invested predominantly in listed and non-complex assets within the meaning of Article 25(4), first subparagraph, of Directive 2014/65/EU of the European Parliament and of the Council7 . To promote diversification while maintaining simplicity, providers of the Basic PEPP should be allowed to allocate a small portion of assets, not exceeding 5 %, to other financial instruments, including alternative assets. |
| 7 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast), (OJ L 173 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) | 7 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast), (OJ L 173 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) |
Or. en
Amendment 15
Proposal for a regulation
Recital 20
| Text proposed by the Commission | Amendment |
|---|---|
| (20) To ensure the quality of advice and to safeguard the interests of prospective PEPP savers, any advice provided in relation to the Basic PEPP should be given on an independent basis and only upon the request of the client. Considering both the non-complex nature of the Basic PEPP and the independent character of the advice, it is appropriate to provide that, where such advice is given, the PEPP distributor is under no obligation to obtain information on the prospective PEPP saver’s knowledge and experience. That approach ensures that the advice remains objective, proportionate and efficient for distributors, while maintaining a high standard of investor protection and promoting the accessibility of the Basic PEPP across the Union through a variety of distribution channels. For the tailored, more sophisticated PEPPs, advice remains essential to provide the most suitable and tailor-made offer to prospective savers, taking into account their knowledge, financial situation, and risk appetite. | (20) To ensure the quality of advice and to safeguard the interests of prospective PEPP savers, any advice provided in relation to the Basic PEPP should be given on an independent basis and only upon the request of the client. Considering both the non-complex nature of the Basic PEPP and the independent character of the advice, it is appropriate to provide that, where such advice is given, the PEPP distributor is under no obligation to obtain information on the prospective PEPP saver’s knowledge and experience. That approach ensures that the advice remains objective, proportionate and efficient for distributors, while maintaining a high standard of investor protection and promoting the accessibility of the Basic PEPP across the Union through a variety of distribution channels. For the tailored, more sophisticated PEPPs, advice remains essential to provide the most suitable and tailor-made offer to prospective savers, taking into account their knowledge, financial situation, and risk appetite. In order to ensure effective transparency and informed decision-making by PEPP savers, information on costs should be presented in a clear, simple and comprehensible manner. The use of multiple cost concepts, indicators and presentation formats may reduce rather than enhance transparency and hinder comparability between products. It is therefore appropriate to streamline the presentation of cost information so that savers can easily understand, at a glance, the overall impact of costs on their investment and compare different providers. More detailed and technical information may, where appropriate, be provided through layered disclosures, ensuring that essential information remains accessible while additional details are available for those who seek them. |
Or. en
Amendment 16
Proposal for a regulation
Recital 22
| Text proposed by the Commission | Amendment |
|---|---|
| (22) Employers’ contributions, including through auto-enrolment arrangements, have proven effective in overcoming behavioural barriers to savings, including inertia or lack of financial literacy, while fostering trust, engagement, and participation in supplementary pensions. Explicitly recognising that employers are allowed to make voluntary contributions to a PEPP could significantly enhance the visibility, relevance, and uptake of PEPPs, particularly among underserved groups, including low-income and part-time workers and young workers early in their careers. Similarly, allowing employers to select the PEPP in the context of a workplace arrangement using auto-enrolment could further strengthen the uptake of the PEPP and offer employees, especially in Member States with less developed occupational pension systems, the possibility to invest their savings for retirement in well-regulated and cost-effective products. Member States should therefore not prevent employers from contributing to PEPPs and should ensure that such contributions are supported by clear rules on the provision of information to employees. Without prejudice to the personal nature of the PEPP, Member Stats should also be able to allow PEPPs to be provided as part of a workplace arrangement using auto-enrolment, where this is in line with national social and labour laws, compatible with the organisation of pension systems and with collective agreements, and does not interfere with the existing occupational pension schemes. To facilitate the use of the PEPP in a workplace context, several amendments to Regulation (EU) 2019/1238 are necessary to ensure that no undue obstacles hinder employers’ contributions and to adapt the relevant framework to the specificities of workplace arrangements. | (22) Employers’ contributions, including through auto-enrolment arrangements, have proven effective in overcoming behavioural barriers to savings, including inertia or lack of financial literacy, while fostering trust, engagement, and participation in supplementary pensions. Explicitly recognising that employers are allowed to make voluntary contributions to a PEPP could significantly enhance the visibility, relevance, and uptake of PEPPs, particularly among underserved groups, including low-income and part-time workers and young workers early in their careers. |
Or. en
Amendment 17
Proposal for a regulation
Recital 23
| Text proposed by the Commission | Amendment |
|---|---|
| (23) Savings accumulated in personal pension products are by nature long-term. However, to facilitate the take-up of PEPPs, it is important that Member States do not hinder the transfer of other retirement savings to PEPPs. To make such transfers attractive, Member States should ensure that PEPPs are not subject to discriminatory or disproportionate financial or administrative obstacles that would make a transfer to a PEPP more costly than transfers between other personal pension products. For the same reason, PEPPs should also benefit from the same tax treatment as comparable national personal pension products. | (23) Savings accumulated in personal pension products are by nature long-term. However, to facilitate the take-up of PEPPs, it is important that Member States do not hinder the transfer of other retirement savings to PEPPs. To make such transfers attractive, Member States should ensure that PEPPs are not subject to discriminatory or disproportionate financial or administrative obstacles that would make a transfer to a PEPP more costly than transfers between other personal pension products. |
Or. en
Amendment 18
Proposal for a regulation
Recital 27
| Text proposed by the Commission | Amendment |
|---|---|
| (27) The provisions set out in Regulation (EU) 2019/1238 ensure a high level of protection for PEPP savers and PEPP beneficiaries. This Regulation removes the fee cap for PEPP. Accordingly, national provisions should not reintroduce such caps or similar limitations applicable to PEPP that would affect the uniform application of this Regulation. | (27) The provisions set out in Regulation (EU) 2019/1238 ensure a high level of protection for PEPP savers and PEPP beneficiaries. This Regulation introduces a benchmark-based approach to costs, combined with full transparency and supervisory monitoring. It should provide flexibility while ensuring that fees remain proportionate and competitive. |
Or. en
Amendment 19
Proposal for a regulation
Recital 31
| Text proposed by the Commission | Amendment |
|---|---|
| (31) In order to allow competent authorities, PEPP providers and PEPP distributors sufficient time to adapt to the requirements of this Regulation, it is appropriate to allow for one year for the application of this Regulation to ensure effective implementation and compliance. | (31) In order to allow competent authorities, PEPP providers and PEPP distributors sufficient time to adapt to the requirements of this Regulation, it is appropriate to allow for two years for the application of this Regulation to ensure effective implementation and compliance. |
Or. en
Amendment 20
Proposal for a regulation
Recital 31 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (31 a) The promotion of personal pension products should not lead to a weakening of statutory pension systems or occupational pension schemes, which remain the cornerstones of retirement provision in Member States. |
Or. en
Amendment 21
Proposal for a regulation
Recital 31 b (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (31 b) In order to promote the exchange of best practices and foster a comprehensive understanding of evolving trends in retirement provision across the Union, it is appropriate to establish a regular platform for dialogue involving Member States, European Union institutions, social partners and relevant stakeholders. Such a forum should build on existing initiatives and contribute to evidence-based policymaking by taking into account both financial and social aspects of pension systems. In particular, discussions should address the adequacy and sustainability of retirement income, the coverage of different categories of workers, including those in non-standard forms of employment, and the role of occupational and personal pensions in complementing public schemes. The active involvement of social partners is essential in this context, in line with national practices. This exchange should contribute to the development of a more inclusive, balanced and effective pension framework in the Union, consistent with the principles of the European Pillar of Social Rights. |
Or. en
Amendment 22
Proposal for a regulation
Recital 31 c (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (31 c) An EU-wide pension tracking systems should cover all accrued retirement entitlements, inculding PEPP. It should allow simple comparability of all pensions entitlements, with a clear distinction between guaranteed and non-guaranteed components and an overivew of all administrative costs across different pensions schemes and providers. |
Or. en
Amendment 23
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Regulation (EU) 2019/1238
Article 2 (1)
| Text proposed by the Commission | Amendment |
|---|---|
| (35) ‘life-cycle investment strategy’ means an investment strategy that adjusts the level of risk attached to investments according to a predetermined glide path directed at mitigating investment risk and providing a reasonable degree of long-term appreciation, taking into account the individual’s age or retirement date, and where relevant, the pay-out profile of the product, to minimise the risk of large losses.; | (35) ‘life-cycle investment strategy’ means an investment strategy that adjusts the level of risk attached to investments according to a predetermined glide path directed at mitigating investment risk and providing a reasonable degree of long-term appreciation, taking into account especially the individual’s age or retirement date, his risk appetite and where relevant, the pay-out profile of the product, to minimise the risk of large losses.; |
Or. en
Amendment 24
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/1238
Article 3 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| Member States shall ensure that PEPPs receive a tax treatment that is not less favourable than that granted to other personal pension products. Where a Member State applies different types or levels of tax relief with regard to such other personal pension products, PEPP shall be eligible for the most favourable treatment available under the law of that Member State.; | deleted |
Or. en
Amendment 25
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a
Regulation (EU) 2019/1238
Article 6 paragraph 2 point fa (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (fa) documentation that demonstrates compliance with product oversight and governance requirements referred to in Article 25, including information on how the PEPP is designed to provide value for money to PEPP savers;; | (fa) documentation that demonstrates compliance with product oversight and governance requirements referred to in Article 25, including that the PEPP with all its options provides value for money to PEPP savers;; |
Or. en
Amendment 26
Proposal for a regulation
Article 1 – paragraph 1 – point 4 a (new)
Regulation (EU) 2019/1238
Article 6 paragraph 2 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (4 a) Requirements imposed on PEPP providers regarding product design, default options and investment strategies shall be proportionate and shall not unduly restrict the diversity of national pension products or business models. |
Or. en
Amendment 27
Proposal for a regulation
Article 1 – paragraph 1 – point 8
Regulation (EU) 2019/1238
Article 23, paragraph 3 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Employers in the cases referred to in Article 47(3) and (4) shall not be considered acting as PEPP distributors.; | 3. Employers in the cases referred to in Article 47(3) shall not be considered acting as PEPP distributors.; |
Or. en
Amendment 28
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/1238
Article 25
| Text proposed by the Commission | Amendment |
|---|---|
| The Commission shall be empowered to supplement this Regulation by adopting delegated acts in accordance with Article 72 to further specify the principles set out in this Article, including, | deleted |
| (a) the adjustments to the methodology applicable to value for money benchmarks for insurance-based investment products under Article 25 of Directive (EU) 2016/97, that are necessary for the development of relevant supervisory benchmarks referred to in paragraph 2, first subparagraph, of this Article. The adjustments shall reflect the longer-term nature of the PEPP with limited redeemability, and shall ensure that PEPPs are compared with groups of comparable personal pension products manufactured and distributed in one or more Member States. | |
| (b) the criteria to determine whether the costs and charges of a PEPP are justified and proportionate within the meaning of paragraph 2, first subparagraph. |
Or. en
Amendment 29
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/1238
Article 25
| Text proposed by the Commission | Amendment |
|---|---|
| Those delegated acts shall take into account in a proportionate way the activities performed, the nature of the PEPPs sold and the nature of the distributor. | deleted |
Or. en
Amendment 30
Proposal for a regulation
Article 1 – paragraph 1 – point 9 a (new)
Regulation (EU) 2019/1238
Article 25 paragraph 1a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (9 a) Benchmarks on value for money developed by EIOPA shall constitute minimum Union standards. This Regulation shall not prevent Member States from maintaining or introducing more stringent national measures on costs, guarantees or consumer protection, provided that such measures are non-discriminatory. |
Or. en
Justification
This amendment prevents regulatory arbitrage and a race to the bottom under Article 114 TFEU.
Amendment 31
Proposal for a regulation
Article 1 – paragraph 1 – point 9 b (new)
Regulation (EU) 2019/1238
Article 25 paragraph 2a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (9 b) Costs and charges exceeding those applicable to the Basic PEPP may only be permitted for PEPPs requiring mandatory independent and personalised advice, provided that the PEPP provider can demonstrate that such costs are proportionate to the additional value delivered to the PEPP saver. |
Or. en
Justification
This ensures a fair differentiation between simple default products and more complex PEPPs requiring advice, without burdening non advised savers with excessive costs.
Amendment 32
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point ii
Regulation (EU) 2019/1238
Article 28 paragraph 3 point c ii (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (xv) where the PEPP is provided to an employee as part of a workplace arrangement using auto-enrolment , the following information: | deleted |
| — the opt out rights agreed at the time of enrolment; | |
| — applicable vesting rules; | |
| — where applicable, the default decumulation pathways or the other different decumulation options; |
Or. en
Amendment 33
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b
Regulation (EU) 2019/1238
Article 28 paragraph 3 point f
| Text proposed by the Commission | Amendment |
|---|---|
| under a section titled ‘What are the costs?’, the costs associated with an investment in the PEPP, comprising both direct and indirect costs to be borne by the PEPP saver, including one-off and recurring costs, presented by means of summary indicators of those costs and, to ensure comparability, total aggregate costs expressed in monetary and percentage terms, to show the compound effects of the total costs on the investment over the previous 12 months and an estimation of the impact of the costs on the final capital accumulated. Where applicable, the costs charged for the capital guarantee shall be explicitly and separately disclosed.; | under a section titled ‘What are the costs?’, the costs associated with an investment in the PEPP, comprising both direct and indirect costs to be borne by the PEPP saver, including one-off and recurring costs, presented by means of summary indicators of those costs and, to ensure comparability, total aggregate costs expressed in monetary and percentage terms, to show the compound effects of the total costs on the investment over the previous 12 months and an estimation of the impact of the costs on the final capital accumulated. Where applicable, the costs charged for the capital guarantee shall be explicitly and separately disclosed.; |
| The information on costs shall be presented in a clear, simple and comprehensible manner, avoiding unnecessary complexity and overlapping cost categories, and shall enable PEPP savers to easily understand, at a glance, the overall impact of costs and to compare different providers; more detailed and technical information may, where appropriate, be provided through layered disclosures. |
Or. en
Amendment 34
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b
Regulation (EU) 2019/1238
Article 28 paragraph 3 point f (new)
| Text proposed by the Commission | Amendment |
|---|---|
| PEPP providers shall clearly disclose all costs and charges, including their impact on long-term returns, in a standardised and comprehensible format enabling comparability across products. |
Or. en
Amendment 35
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Regulation (EU) 2019/1238
Article 33 paragraph 2a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. Where the PEPP is provided to an employee as part of a workplace arrangement using auto-enrolment, the information referred to in paragraph 1 shall be provided to the employee promptly after the enrolment in the arrangement concerned.; | deleted |
Or. en
Amendment 36
Proposal for a regulation
Article 1 – paragraph 1 – point 13 – point a
Regulation (EU) 2019/1238
Article 36 paragraph 1 point d 2nd sentence
| Text proposed by the Commission | Amendment |
|---|---|
| If the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario, a favourable scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP contract;; | If the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario, a favourable scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP contract;; The information shall be presented in a clear, simple and comprehensible manner, avoiding unnecessary complexity. |
Or. en
Amendment 37
Proposal for a regulation
Article 1 – paragraph 1 – point 18 a (new)
Regulation (EU) 2019/1238
Article 45 paragraph 1a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (18 a) 4. The Basic PEPP shall include at least one of the following protection mechanisms: (a) capital protection at the end of the accumulation phase; or (b) a minimum real return guarantee; or (c) a return linked to a prudent and objectively defined benchmark, such as real wage or income growth. |
Or. en
Justification
A default pension product without any guaranteed outcome is incompatible with the social purpose of retirement savings.
Amendment 38
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Regulation (EU) 2019/1238
Article 45a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| Article 45a | |
| PEPPs for workers with discontinuous careers | |
| For temporary agency workers, students, platform workers and other persons with discontinuous careers, PEPP providers shall ensure: (a) an automatic low-cost structure; (b) no entry, exit or transfer fees; (c) preservation of accrued rights during short interruptions; (d) a default highly defensive investment allocation. In Member States where collectively managed pension schemes exist for such groups, Member States may provide that PEPPs shall not be offered as a substitute. |
Or. en
Justification
PEPP should serve as a third pillar safety net, not as a replacement for solidarity based schemes.
Amendment 39
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Regulation (EU) 2019/1238
Article 45 – paragraph 3a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The total annual costs and charges of a Basic PEPP, including all direct and indirect costs, shall not exceed 1 % of the accumulated capital per year. The Commission shall be empowered to adopt delegated acts, after consulting EIOPA, to set a lower maximum cost level where this is justified by market developments and the need to ensure a high level of consumer protection. |
Or. en
Justification
As the Basic PEPP is distributed as a default product without mandatory advice, ex ante cost containment is essential, in particular for low income and irregular contributors.
Amendment 40
Proposal for a regulation
Article 1 – paragraph 1 – point 19 a (new)
Regulation (EU) 2019/1238
Article 45 paragraph 5 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (19 a) 5. In Member States where national personal pension products are subject to mandatory minimum protection or return guarantees, PEPPs distributed in those Member States shall not provide a lower level of protection. |
Or. en
Justification
This avoids circumvention of national pension safeguards through PEPP distribution.
Amendment 41
Proposal for a regulation
Article 1 – paragraph 1 – point 21
Regulation (EU) 2019/1238
Article 47 paragraph 3 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to national social and labour law regarding the organisation of pension systems and the autonomy of social partners, including compulsory membership and the outcomes of collective bargaining agreements, and insofar as it does not interfere with the existing occupational pension schemes, Member States may allow the PEPP to be provided to an employee as part of a workplace arrangement using auto-enrolment. | deleted |
Or. en
Amendment 42
Proposal for a regulation
Article 1 – paragraph 1 – point 21
Regulation (EU) 2019/1238
Article 47 paragraph 4 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| In the case the PEPP is provided to an employee as part of a workplace arrangement using auto-enrolment, the PEPP saver shall have the right to opt out and rejoin in accordance with the national framework governing auto-enrolment, including relevant social and labour law on the organisation of pension systems, compulsory membership and the outcomes of collective bargaining agreements. | deleted |
Or. en
Amendment 43
Proposal for a regulation
Article 1 – paragraph 1 – point 22
Regulation (EU) 2019/1238
Article 51a paragraph 1 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Member States shall ensure that, where pension tracking systems are in place, they cover the PEPP accrued retirement entitlements. | 1. Member States shall ensure that, where pension tracking systems are in place, they cover the PEPP accrued retirement entitlements. It should allow simple comparability of all pensions entitlements, with a clear distinction between guaranteed and non-guaranteed components and an overview of all administrative costs across different pensions schemes and providers. |
Or. en
Amendment 44
Proposal for a regulation
Article 1 – paragraph 1 – point 22
Regulation (EU) 2019/1238
Article 51a paragraph 6 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 6. The format and structure of the information to be transmitted to pension tracking systems shall be consistent with the format and structure laid down in the Delegated Regulation adopted pursuant to Article 37.; | deleted |
Or. en
Amendment 45
Proposal for a regulation
Article 1 – paragraph 1 – point 24
Regulation (EU) 2019/1238
Article 57 paragraph 3 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 3. In the case of PEPPs provided to an employee as part of a workplace arrangement using auto-enrolment, the provisions referred to in this Chapter shall be without prejudice to the right of an employer to determine default decumulation pathways where this is provided for under the law of the Member State concerned.; | deleted |
Or. en
Amendment 46
Proposal for a regulation
Article 1 – paragraph 1 – point 25
Regulation (EU) 2019/1238
Article 65 paragraph 8a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| 1 a. The intervention powers of EIOPA shall be exercised without prejudice to the right of national competent authorities to impose stricter measures, including cost caps or guarantee requirements, to protect PEPP savers. |
Or. en
Justification
Supervisory convergence must not lead to a lowering of national protection standards.
Amendment 47
Proposal for a regulation
Article 1 – paragraph 1 – point 25 a (new)
Regulation (EU) 2019/1238
Article 66 bis (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (25 a) Article 66 bis: Cooperation between the Commission, Member States, and social partners | |
| The European Commission shall organise an annual Union Pension Forum bringing together representatives of the Member States, the European Insurance and Occupational Pensions Authority, social partners, civil society organisations and stakeholders active in the provision of retirement products. | |
| The Forum shall serve as a platform for the exchange of best practices and experiences regarding the design, implementation and performance of pension systems across the Union, with particular regard to supplementary pension arrangements, including occupational and personal pension products. The discussions within the Forum shall not be limited to financial market aspects but shall give equal consideration to the social dimension of pension provision, including: | |
| (a) adequacy of retirement income; (b) coverage of different categories of workers, including those in non-standard forms of employment; (c) the impact on inequality, including the gender pension gap; (d) the interaction between public, occupational and personal pension schemes; (e) the role of social partners in the design and governance of pension systems. | |
| The Forum shall, where appropriate, build on evidence gathered through Union legislation, including Regulation (EU) 2019/1238, Directive (EU) 2016/2341, and Directive 2009/138/EC, and shall take into account developments in Member States’ pension systems. The Commission shall ensure the active involvement of social partners in the preparation and conduct of the Forum, in accordance with national practices, and shall promote a balanced representation of stakeholders. | |
| The outcomes of the Forum shall be summarised in an annual report published by the Commission, highlighting best practices, identified challenges and possible areas for further policy development, including with regard to the social and employment aspects of pension provision. | |
| The Forum shall contribute to the development of a more robust, inclusive and sustainable pension framework in the Union, consistent with the objectives of the European Pillar of Social Rights. |
Or. en
Amendment 48
Proposal for a regulation
Article 1 – paragraph 1 – point 30
Regulation (EU) 2019/1238
Article 73 paragraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| By [PO = please insert the date corresponding to five years after the application date of this Regulation], and every five years thereafter, the Commission shall carry out an evaluation of this Regulation, and after consulting EIOPA and the other ESAs where appropriate, present a report on the main findings to the European Parliament and the Council.. | By [PO = please insert the date corresponding to five years after the application date of this Regulation], and every five years thereafter, the Commission shall carry out an evaluation of this Regulation, and after consulting EIOPA and the other ESAs where appropriate, present a report on the main findings to the European Parliament, the Council, the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions and the social partners. That evaluation shall not be limited to financial market aspects, but shall give equal consideration to the social dimension of pension provision. |
Or. en
Amendment 49
Proposal for a regulation
Article 3 – paragraph 2
Regulation (EU) 2019/1238
Article 74
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation shall apply from [PO = please insert 1 year after entry into force of this Regulation]. | This Regulation shall apply from [PO = please insert 2 years after entry into force of this Regulation]. |
Or. en
Annex: declaration of input 4 paragraphs
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her draft opinion input on matters pertaining to the subject of the file that she received, in the preparation of the draft opinion, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| The Permanent Representation of Belgium to the European Union |
| European Trade Union Confederation |
| Pensioplus |
| ACV-CSC |
| CNV |
| FNV |
| European Commission - Directorate General for Financial Stability, Financial Services and Capital Markets Union |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
| None |
The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.