MEPs adopt groundbreaking proposals for a Pan - European Personal Pension Product
The ECON Committee of the European Parliament last night adopted its position on the proposal to establish a complementary, voluntary and individual Pan-European Personal Pension Product (PEPP). The compromises of rapporteur and ALDE vice-president Sophie in ‘t Veld were adopted, giving the Parliament’s team a mandate to start negotiations with EU Governments.
The Parliament’s report adds higher protections relating to consumer protection, portability, collective redress measures, a specified regime for the provision of information to European savers and the idea of a ‘basic’ PEPP with very safe investment options, available for any EU citizens to invest in. Access to an income upon retirement is of paramount importance, and even codified in the European Chapter of Fundamental Rights. With this new legislation, many will not only have the possibility to obtain a pension product, but also a safe one with a European safety label. However, the first and second pillar should also be reinforced and remain the main source of income after retirement.
Sophie in ‘t Veld MEP commented after the vote last night;
“I hope that European consumers will soon benefit from more choice when saving for retirement – This proposal will provide pension providers with the tools to offer a simple and innovative pan-European personal pension product, offering greater choice to consumers. Citizen’s will be able to relocate across borders without the need to change their pension, which will be a big step forward.”
“I am delighted with the Parliament’s suggested amendments to the proposal; we have added additional protections for consumers and a specified regime for a basic pension product with very safe investment options. I look forward to fighting for Parliament’s suggestions in the coming negotiations.”