On 24 June 2026, the Council of the European Union published an addendum to a proposal amending Directives (EU) 2016/2341 and 2016/97, aiming to strengthen the framework for occupational retirement provision. The proposal targets Institutions for Occupational Retirement Provision (IORPs), Member States, and EU citizens, seeking to address ageing populations and low returns on household savings by boosting supplementary pensions and long-term investment.
The document, an item note for the Council meeting of 26 June 2026, outlines several key changes. IORPs would be required to undergo an authorisation procedure with a prudential assessment by competent authorities, including a scheme of operation. They may operate multiple pension schemes and accept sponsorship from multiple undertakings; host Member State laws requiring a specific legal form would not apply to multi-sponsor or multi-scheme IORPs from another Member State. Cross-border activity extensions to additional sponsors or schemes in the same host Member State would benefit from a simplified notification procedure completed within one month; non-material amendments also qualify. Member States must ensure simple, transparent procedures for domestic collective transfers, no more restrictive than cross-border transfer rules. Member States may opt to apply the Directive to institutions otherwise excluded from its scope and not covered by other Union prudential law, notifying the Commission and EIOPA. IORPs may carry out personal retirement provision activities; Member States may not apply all Directive provisions to such activities, but must prevent asset transfers between occupational and personal businesses. An authorised entity from another Member State may operate an IORP if national law allows such entities and the entity is authorised under harmonised Union rules.
The proposal streamlines IORP authorisation, cross-border operations, and transfers to achieve greater scale and efficiency, while allowing Member States flexibility for excluded institutions and personal retirement activities. For IORPs, the new rules reduce administrative burdens for cross-border expansions and multi-sponsor schemes, potentially lowering costs and enabling economies of scale. However, the mandatory authorisation procedure and prudential assessment may impose initial compliance costs. For Member States, the flexibility to opt in excluded institutions and to set rules for personal retirement activities preserves national sovereignty, but the requirement for simplified domestic transfer procedures may necessitate legislative adjustments. EU citizens could benefit from increased access to supplementary pensions and potentially higher returns due to more efficient IORP operations, though the impact depends on national implementation. The European Parliament and the Council will now negotiate the final text, with the European Commission and EIOPA expected to provide technical input.