- The text introduces measures aimed at improving the supervision, transparency and competitiveness of these funds
- An annual referral to the beneficiaries and participants of a "declaration of pension benefits" with information on the pension provision they will receive in retirement is included as an obligation.
- Thus begins the transposition of the European Directive on the activities and supervision of the Employment Pension Funds
The Council of Ministers has analyzed the Draft Law for the transposition of the European Directive that regulates the activities and supervision of the Employment Pension Funds.
With this transposition, the consolidated text of the Law for the Regulation of Pension Plans and Funds is modified.
The Preliminary Draft incorporates innovations aimed at improving the governance, information, supervision and transparency systems of pension funds. Also included are measures aimed at boosting competitiveness and creating a single market, by regulating activity and cross-border fund transfers.
With regard to the pension fund governance system, the Draft Law reinforces the general requirements for corporate governance, as well as those of aptitude and honorability of the people who participate in decision-making. Issues related to the remuneration policy and the organization of the fund are also included, establishing the obligation to maintain written policies and carry out an annual internal risk assessment.
On the other hand, the information that the participants and beneficiaries must receive, before and after their subscription, is improved and specified. The mandatory annual submission of the “declaration of pension benefits” stands out. This document must include the foreseeable pension that will correspond to the beneficiary when he retires, including different scenarios of possible evolution.
Aspects related to prudential supervision are also articulated, especially those related to transparency, the supervisory review process, the duty of professional secrecy and the exchange of information.
Regulation of cross-border activity
The Draft Law regulates the procedure for the activity and cross-border transfers of pension funds. The objective is to create an internal market for social security of employment in the European Union.
To this end, the approved text improves the communication procedure between supervisory entities for the integration of employment pension plans between states of the European Union. As a novelty, cross-border transfers are regulated, which will allow the mobilization of a pension plan between pension funds from different countries.
The Government has agreed to request the mandatory reports corresponding to the processing of this APL.
