The Ministry of Labour has submitted a harmonizing bill to Parliament to strengthen the transparency and supervision of Institutions for Occupational Retirement Provision (IORPs).

The main objective is harmonization with the European directive regarding the European Single Access Point, making relevant information publicly accessible by 2030.

The investment policy of the institutions is updated, offering greater investment flexibility and regulating the management of foreign currency funds.

New definitions are introduced, and concluding a participation agreement between the contributing undertaking and the institution is rendered mandatory for stricter supervisory purposes.

The bill was approved by the Council of Ministers in June, following an extension received by Cyprus for the transposition of the European directive.

The pillar of transparency for the supervision of Institutions for Occupational Retirement Provision (IORPs) is the harmonizing bill processed and submitted to Parliament by the Ministry of Labour, which is presented today by INK.

The purpose of the bill is harmonization with Article 14 of the relevant directive of the EU and the European Parliament regarding the amendment of certain directives, aiming at the establishment and operation of the European Single Access Point (ESAP), which concerns the investment policy of retirement benefits.

Furthermore, by also amending Article 32 of the basic law, the provisions concerning the investment policy will be updated to provide greater flexibility in investments, under the stipulated conditions and restrictions of the law.

At the same time, provisions will be made for managing investments in foreign currency that have been hedged into euros.

With the proposed amendments, the legal framework governing the operation of Institutions for Occupational Retirement Provision will be strengthened.

Specifically, the bill includes provisions for implementing the requirements deriving from an EU regulation on the establishment of the European Single Access Point (ESAP).

Through ESAP, information concerning IORPs and their activities will become accessible to the public.

For this purpose, it is specified that, from January 10, 2030, the Registrar of IORPs will ensure that specific information published by IORPs is simultaneously submitted to the competent collection body so that it becomes accessible via the European Single Access Point.

Technical requirements for the format and metadata of the information are also provided, as well as the obligation for IORPs to obtain a legal entity identifier code.

Furthermore, the amending bill introduces new definitions, as well as general interpretative provisions referring to legislative acts of the EU and the Republic of Cyprus, ensuring clarity and uniform application of the legislative framework.

The addition of the new article also ensures the conclusion of a participation agreement between the contributing undertaking and the IORP, which will form an integral part of the operating rules of retirement benefits and will be submitted to the Registrar of IORPs for supervisory purposes.

According to the Ministry of Labour, the proposed bill is deemed necessary both for purposes of the Republic’s compliance with obligations deriving from EU law and for purposes of strengthening the supervision, transparency, and effective operation of IORPs.

It is noted that member states were obliged to adopt and publish the necessary measures for harmonization with the relevant directive by January 10, 2026, at the latest.

Cyprus, through the Legal Service, requested and received a time extension. The Commission had sent a letter of formal notice to the Republic of Cyprus regarding the non-notification of measures.

The letter had been answered by the Legal Service.

It is noted that the harmonizing bill was placed before the members of the Council for Occupational Retirement Provision, who were informed and agreed with its content.

The proposed bill was approved by the Council of Ministers last June, following a proposal by the Minister of Labour, Marinos Moushouttas.

The Council of Ministers, at the same time, authorized the competent Minister to submit it to the House of Representatives for enactment.

Source: ink.com