The European Union (EU) has reached provisional agreement on a proposed voluntary pan-European personal pension product (PEPP) that would complement public and occupational pensions and increase retirement savings choices for all individuals, especially mobile workers. Once adopted by the Council of Ministers, the European Commission and EIOPA (the EU’s pension regulatory authority) will publish delegated acts setting out definitions and other details, and the regulation will take effect 12 months later. The first PEPPs will be offered in late 2021.
The proposed regulation aims to “lay the foundations for a successful market in affordable and voluntary retirement-related investments that can be managed on a pan-European scale.” Core features of the PEPP would be the same in all member states and would create “a largely standardized pan-European product” to enable long-term savings for personal pensions “with no or strictly limited opportunities for early redemption.”
The proposal outlines: