1. The Changing Shape of the European Pensions Market Dr. Kees Van REES Madrid, 13th April 2000 World Conference of Pension Funds EFRP European Federation for Retirement Provision

2. Overview * Introduction on EFRP * History of Pension Funds before and after WWII * Three Pillar Structure * Reforms can be noticed * Occupational Pensions and European Union * EU level process for single market of pension funds EFRP European Federation for Retirement Provision

3. EFRP Presentation EFRP European Federation for Retirement Provision * 17 EU countries * established in 1981 * achieve common positions among Member Associations * at EU level formally acknowledged as unified voice for National Pension Fund Associations * 2100 Euro assets

4. History before WWII EFRP European Federation for Retirement Provision * Long standing history * Formal pension schemes (from 2nd half of 19th century) * Pensions as discretionary benefits - D.B. - largely unfunded - skewed towards senior workers - lost when leaving the company * Role of occupational pensions: - secure old age income - supplement old age income

5. History after WWII EFRP European Federation for Retirement Provision * Renewal of societies with new social model * Modern statutory social security systems * basic social protection to all * Pensions as one of the basic pillars of social protection

6. EFRP European Federation for Retirement Provision Three Pillar Structure of Retirement Income Provision State PensionSupplementary Pension Individ. Pensions + Own House + Savings

7. ã Equal treatment approach ã Single market principle ã Recent developments * Euro * Single market * Global liberalisation ã Banking and insurance industry EFRP European Federation for Retirement Provision European Union and Supplementary Pensions

8. EFRP European Federation for Retirement Provision EU level action Green Paper on Supplementary Pensions * Analysis of social, economic and financial context * Investment restrictions impair performance * Prudent man favoured * Labour mobility *Taxation obstacles *Numerous responses

9. EFRP European Federation for Retirement Provision * Comprehensive approach * 3 pillars under subsidiarity principle * Main lines of action * Prudential rules for pension funds * Remove obstacles labour mobility * Coordinate taxation * EP and ESC supportive yet strict supervision EU level action European Commission Communication - Single Market of Supplementary Pensions

10. EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision * Safeguarding Directive - 1998 * Taxation Policy Group EU level action Follow-up Green Paper and Communication

11. EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EU level action Draft Proposal Directive for Prudential Supervision of Institutions for Occupational Retirement Provision * Key elements : * liberalisation * mutual recognition