• The approved standard completes the transposition of Directive 2016/2341, on the activities and supervision of employment pension funds, and Directive 2017/828, on promoting long-term involvement of shareholders
  • Regarding the supervision of employment pension funds, the “Declaration of pension provision” is incorporated, which will allow the beneficiary to have a periodic estimate of the pension he will receive
  • On promoting long-term stakeholder involvement, the required information is established for pension funds on their long-term investment strategy

The Council of Ministers has approved a Royal Decree that completes and advances the transposition of European directives that affect pension funds and insurance.

Specifically, the transposition of Directive 2016/2341, on the activities and supervision of employment pension funds, of Directive 2017/828, on promoting long-term involvement of shareholders, is finalized, and Progress is being made in the transposition of Directive 2019/2177, which modifies the Solvency II Directive on access to and the exercise of insurance and reinsurance activities.

The Directive that regulates the activities and supervision of the employment pension funds was incorporated into the Spanish legal system in its most outstanding aspects through Royal Decree-Law 3/2020. The norm approved today completes the regulatory development by regulating the right to information of the participants and beneficiaries of pension plans and the system of government of the employment pension funds.

The protection of the rights of the participants in pension plans is increased, knowledge about the risks they assume is increased, and information about the cost of managing the fund and what they can expect to receive at the time of retirement.

With this objective, the “Declaration of pension provision” is included, a document with a periodicity of at least one year that will inform the saver of the pension that he is expected to receive from his pension fund at the time of retirement. The document will include information regarding the assumptions used to calculate the pension forecast, the amount expected in favorable and unfavorable scenarios, and the pension collection options.

Likewise, the government system of employment pension funds is regulated, with the aim of guaranteeing that risks are correctly managed and protecting the savings of the participants.

The transposition of Directive 2017/828 on promoting long-term involvement of shareholders is also completed, and the reporting obligations for pension funds on their long-term investment strategy in companies whose shares are held are established. admitted to trading on a regulated market.

Finally, progress is being made in the transposition of Directive 2019/2177, which modifies the Solvency II Directive on access to insurance and reinsurance activities, in a specific aspect referring to the adjustment for volatility in the calculation of the technical provisions of the insurers.



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