Under the Cyprus Presidency, the EU Council finalized its negotiating mandate for the IORP II Directive revision, targeting enhanced cost transparency, reduced cross-border

Paving the Way for Pension Fund Revisions

The Council of the European Union under Cyprus Presidency agreed on Friday its negotiating mandate for a review of the IORP II Directive, the EU framework governing occupational pension funds, paving the way for interinstitutional talks with the European Parliament.

The proposed revision aims to improve transparency on costs and returns for pension scheme members, strengthen risk management and remove barriers, including cross-border obstacles, that currently limit investment by occupational pension institutions.

Mobilizing Long-Term Capital for EU Competitiveness

The Council said the reform is a key element of the EU Savings and Investments Union agenda and is expected to support more adequate retirement incomes while helping mobilise long-term capital for the European economy.

"Increasing private participation in our capital markets is key to boosting the EU's overall competitiveness. Strengthening occupational pensions will help us meet that challenge. Today's agreement brings us a step forward in removing persistent barriers that hinder investment in this area, while contributing to more sustainable pension systems overall," Cyprus Finance Minister Makis Keravnos said in a statement.

Maintaining Flexibility and Next Institutional Steps

The Council's position maintains key elements of the European Commission's proposal, including the prudent person principle, rules on cross-border activities and collective transfers, while preserving broad flexibility for member states to reflect the specific features of their national pension systems.

Negotiations with the European Parliament will begin once lawmakers adopt their own negotiating position on the proposed revision.

investment barriers, and stronger pension sustainability.

Source: CNA(ΚΥΠΕ)