working for pensions in europe ms. chris verhaegen, secretary general efrp fiap international...
TRANSCRIPT
Working for pensions in Europe
Ms. Chris VERHAEGEN , Secretary General EFRP
FIAP International Conference
31 May 2007, Varna
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Key messages
1. EFRP is the European industry representative
focussing on funded and workplace pension provision
2. EU-enlargement with 12 MS has increased diversity in
EU pension systems
3. Europe should reflect on a “European pension model”
combining EU-15 and EU-12 systems
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The EFRP
29 Member Associations
• 16 EU Member States (EU-15 – EL) + HU + SK
• 5 non-EU (CH, Guernsey, HR, IS, NO)
Core Membership : funded and workplace pension providers
Representative organisation with EU institutions, OECD and IOPS
75 million EU citizens rely on EFRP members for their supplementary retirement income - Total assets managed = 3,6 trillion Euro (2005)
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EFRP Mission Statement
EFRP stands for: • Affordable pensions for large sections of the
population • helping to maintain living standards in retirement • that provide a degree of intra- and inter-generational
solidarity and, which are
• administered through funding institutions • which can benefit from a European passporttaking into account: • the principles of subsidiarity and national diversity
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EFRP key partner in EU
A partner for:
• contacts with industry representatives across EU
• influencing EU decision making
• obtaining selected EU-level information
• delivery of in depth analysis on some key issues for
private pension providers
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Common challenges in the EU
• All Member States face similar challenges: – Ageing societies – Budgetary deficits in MS– Low economic growth– Rigid national labour markets – Globalisation
• EU is developing, within its competence, a policy mix, affecting public and private pensions
• EU-27 pension modelling is needed
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EU-15 multi-pillar model
Social assistance programmes for the elderly
First Mandatory – PAYG - publicly financed and managed
Second Occupational pension - linked to paid work
- usually organised as group schemes set up in the framework of a company, a group of companies or of sectors of industry or professional groups
Third Voluntary individual savings for retirement
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EU-15 multi-pillar model in reform
Social assistance programmes for the elderly
First Mandatory – PAYG - publicly financed and managed
Funding elements (DK, SE, FI) + demographic funds + increasing retirement age
Second Occupational pension - linked to paid work
- usually organised as group schemes set up in the framework of a company, a group of companies or of sectors of industry or professional groups
Personal Pensions (UK) - PRSA (IE) – Riester (DE) +
shift away from DB to DC
Third Voluntary individual savings for retirement
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EU-12 (NMS) multi-pillar model
Social assistance programmes for the elderly
First Mandatory – PAYG - publicly financed and managed
PL- LV → notional defined contribution systems (NDC)
Second Mandatory funded individual accounts operated by private pension management companies
Third Voluntary funded individual accounts (occupational and individual)
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EU-27: Divergence → convergence
EU-15 EU-12
Social assistance programmes for the elderly
1st pillar – State pension
2nd pillar mandatory
3rd pillar voluntary
2nd pillar occupational
3rd pillar individual
EU-27
2nd pillar
3rd pillar
PR
IVA
TE
ST
AT
E
PA
YG
FU
ND
ED
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EFRP Proposal EU-27 pension pillar terminology (1)
Social assistance programmes for the elderly
1st pillar – State pension
2nd pillar - workplace
3rd pillar – individual
PR
IVA
TE
ST
AT
E
government company level
Acknowledge and consistently label
product diversity – who is designing the
scheme
social partners
Mandatory Voluntary
PA
YG
FU
ND
ED
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Key messages
1. EFRP is the European industry representative
focussing on funded and workplace pension provision
2. EU-enlargement with 12 MS has increased diversity in
EU pension systems
3. Europe should reflect on a “European pension model”
combining EU-15 and EU-12 systems
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Contact
EFRP
Koningsstraat 97 rue Royale1000 Brussels
BelgiumTel.: +32 2 289 14 14 Fax: +32 2 289 14 15