- The text introduces measures aimed at improving the supervision, transparency and competitiveness of these funds.
- The annual referral to the beneficiaries and participants of a “declaration of pension benefits” with information on the pension forecast they will receive in retirement is included as an obligation.
- The transposition of the European Directive on the activities and supervision of the Employment Pension Funds begins
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 revised text of the Law on Regulation of Pension Plans and Funds is modified.
The Draft incorporates developments aimed at improving the governance systems, information, supervision and transparency of pension funds. It also includes measures aimed at boosting competitiveness and the creation of a single market, through the regulation of activity and cross-border transfers of funds.
With regard to the system of government of pension funds, the Draft Law reinforces the general requirements of 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 collected, establishing the obligation to maintain written policies and conduct an annual internal risk assessment.
On the other hand, the information that the participants and beneficiaries should receive before and after their subscription is improved and specified. The mandatory referral on an annual basis of the "statement 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.
The 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 cross-border activity and transfers of pension funds. The objective is to create an internal market for social employment forecasting in the European Union.
To this end, the approved text improves the communication procedure between the 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 of different countries.
The Government has agreed to request the mandatory reports corresponding to the processing process of this APL.