The revised IORP Directive is often referred to as IORP II. IORP stands for Institution for Occupational Retirement Provision, or in other words a Pension Fund. IORP II came into force on 12 January 2017. The EU member states are required to have transposed the Articles of the Directive into their national legislation by 13 January 2019. The IORP II Directive contains 67 articles, whereas its predecessor had only 24 articles. Serious requirements have been added. Many of those are very important for actuaries working on pensions, pension funds and pension insurance.
The web session will inform you about the process of the revision, which took around nine years. The actuarial profession has been actively involved especially in the technical aspects of the Directive. Falco Valkenburg will share some of his experiences as an observer to the technical working group of the European Insurance and Occupational Pensions Authority (EIOPA).
He will then provide insight in the process of making and revising EU Directives. Who takes the initiative? How are the European Commission, the European Council of Ministers and the European Parliament interacting? Who else is involved and what was the involvement of the European actuarial profession?
In the second part of the web session the changes between IORP and IORP II will be discussed. You will see that there are important changes that directly link to the work of actuaries, such as the introduction of an Actuarial Function and a Risk Management Function. One of the fundamental reasons of the revision is to remove barriers for the operation of cross-border IORPs. Other important reasons have been to ensure good governance and risk management of IORPs. Important elements in this respect are “intergenerational fairness” and “ESG risks” (ESG = environmental, social and governance). Providing clear and relevant information to members and beneficiaries is yet another fundament of IORP II. Falco Valkenburg will discuss what the requirements are and how actuaries can support the pension industry in a good implementation.
The third part of the web session will focus on what can be expected going further. EIOPA will conduct their second European stress test for IORPs in 2019. What can we expect from this stress test? How is the European actuarial profession already contributing? What can actuaries do who are working for or advising IORPs?
Organised by the EAA - European Actuarial Academy GmbH.
