Spain strengthens pension fund supervision, EU IORP II

Connecticut Enacts Paid Family and Medical Leave

A Spanish decree (Spanish) aimed at implementing the European Union (EU) directive on the supervision of institutions for the occupational retirement provision (IORP II) took effect on 6 Feb 2020, but organizations will have until 6 Aug 2020 to adjust to the new requirements. The decree aims to set conditions for cross-border activity of pension funds, increase the protection of scheme members, and strengthen prudential supervision.

Highlights

  • Pension funds must issue more transparent documentation for all phases, especially with regard to accrued pension rights and the amount of retirement benefits members can expect to receive.
  • Funds must fulfill certain governance requirements subject to implementing risk management and internal audit arrangements appropriate to the fund’s size and complexity, and can outsource certain functions.
  • Pension fund committees must publish their long-term investment strategy and implement an appropriate remuneration policy (1) for all staff performing key functions within the managing entity and (2) for staff with who have a significant impact on the risk profile of the fund. The remuneration policy must be in line with the organization’s size, nature, scale and complexity.

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Juan Luis Alonso
by Juan Luis Alonso

Senior Associate, Mercer Wealth

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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