48 Amendments of Sirpa PIETIKÄINEN related to 2017/0143(COD)
Amendment 176 #
Draft legislative resolution
Citation 6 a (new)
Citation 6 a (new)
- having regard to the US model of a federal pension saving account, ‘401(k) plan’, which provides an example for portability. The model represents a qualified employer-established plan, to which employees may opt to contribute through a salary deferral, and to which employers may opt for a matching or non- elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan,
Amendment 181 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Old age pensions constitute an essential part of a retiree’s income, and for many people an adequate pension provision makes the difference between a comfortable old age or poverty; it is a precondition for exercising fundamental rights laid down in the Charter of Fundamental Rights of the European Union, including in Article 25 on the rights of the elderly which states: “The Union recognises and respects the rights of the elderly to lead a life of dignity and independence and to participate in social and cultural life”.
Amendment 188 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) The Union is facing several challenges, including demographic challenges because of the fact that Europe is an ageing continent. In addition, career patterns, the labour market and the distribution of wealth are undergoing radical changes, not least as a result of the digital revolution. At the same time, it is increasingly clear that national security systems are not adjusted to a globalised knowledge economy with open borders, labour mobility and migration. Too many people are not, or are inadequately covered by the traditional national pension systems, including, inter alia, women, young people, migrants, low-skilled workers, self-employed workers, and workers with atypical contracts, including mobile and skilled workers with fragmented employment history.
Amendment 193 #
Proposal for a regulation
Recital 1 c (new)
Recital 1 c (new)
(1c) As the number of individuals working in multiple Member States is increasing in the future, and as a growing number of individuals are atypical workers working under fragmented contracts, for several employers comprising the public and the private sectors, as well as self-employed and micro-entrepreneurs, the future pension and social security of these categories of people risk to be insufficient and need to be ensured through an individual European pension account. In this context, calls for a pan-European Personal Pension Product (PEPP) to be offered as an alternative to second pillar pension, where both employees and employers can opt for either a national or a pan-European product, to be developed in the future.
Amendment 199 #
Proposal for a regulation
Recital 1 d (new)
Recital 1 d (new)
(1d) Calls for the further development of a pan-European pension product as a viable alternative to second pillar pensions, to be developed guided by the example of the U.S. model of a federal pension saving account, “401(k) plan”, representing a qualified employer- established plan, to which employees and an employers may opt in.
Amendment 244 #
Proposal for a regulation
Recital 19
Recital 19
(19) The pan-European dimension of the PEPP can be developed not only at the level of the provider, through the possibilities for its cross-border activity, but also at the level of the PEPP saver – through the portability of the PEPP, thus contributing to the safeguarding of personal pension rights of persons exercising their right to free movement under Articles 21 and 45 TFEU. Portability involves the PEPP saver changing residence to another Member State without changing PEPP providers, whereas the switching of PEPP providers does not necessarily involve a change of residence. Where portability is not provided for a PEPP saver changing residence to another country, such as resulting from a lack of compartments offered by the PEPP provider or through a partnership, facilitated switching should be made available to the PEPP saver changing residence to another country. Such a situation should be held as a grounded reason to allow for switching provider once a year.
Amendment 264 #
Proposal for a regulation
Recital 26 a (new)
Recital 26 a (new)
(26a) Calls for the introduction of a Union pension calculator, enabling citizens to calculate their accumulated pension capital and accrued pension entitlements, so as to have a complete overview and to estimate the sufficient pension level to meet their personal expected income need for living and care, combined with pillars 1 and 2 and other existing sources of income. This calculation exercise should be executed online or with the provider to determine the needed level of income every time the investment strategy is changed by the PEPP saver, to avoid underfinancing the upcoming pension. Such a calculator should be developed as a matter of urgency, alongside the development of PEPP.
Amendment 269 #
Proposal for a regulation
Recital 30
Recital 30
(30) PEPP providers should inform PEPP savers sufficiently in advance before retirement about their pay-out options, and such savers should, as minimum, be reminded about their pay-out options one year before the retirement. Where the retirement benefit is not paid out as a lifetime annuity, members approaching retirement should receive information about the benefit payment products available, in order to facilitate financial planning for retirement.
Amendment 298 #
Proposal for a regulation
Recital 39
Recital 39
(39) The default investment option should allow the PEPP saver to recoup a minimum of 40 % of the invested capital. The PEPP providers could in addition include an inflation indexation mechanism to at least partly cover inflation. The default investment option should provide the PEPP saver with a balance between downside protection and return generation through investment in a suitable portfolio of funds combined with minimum guarantees.
Amendment 313 #
Proposal for a regulation
Recital 53
Recital 53
(53) PEPP savers should be given the freedom to decide upon subscription of a PEPP about their pay-out choice (annuities, lump sum, or other) in the decumulation phase, but with a possibility to revise their choice once every five years thereafter, in order to be able to best adapt their pay-out choice to their needs when they near retirement. Maximum 10 % of the out- payment can be taken as a lump sum. The form of the remainder of the out-payment shall be chosen by the PEPP saver and take the form of annuities or drawdown payments.
Amendment 319 #
Proposal for a regulation
Recital 56
Recital 56
(56) Although the ongoing supervision of PEPP providers is to be exercised by the respective competent national authorities, EIOPA, together with ESMA where appropriate, should coordinate the supervision with regards to PEPPs, in order to guarantee the consistent application of a unified supervisory methodology, contributing in this way to the pane- European nature of the pension product.
Amendment 320 #
Proposal for a regulation
Recital 57
Recital 57
(57) EIOPA should cooperate with ESMA as well as national competent authorities and facilitate cooperation between them NCAs. In this respect, EIOPA should play a role in the power of competent national authorities to apply supervisory measures by providing evidence about PEPP-related infringements. EIOPA should also provide binding mediation in the event of disagreement between competent authorities in cross-border situations.
Amendment 322 #
Proposal for a regulation
Recital 64 a (new)
Recital 64 a (new)
(64a) Given the pan-European nature of PEPP and the provision of PEPP, cross- border mechanisms for collective compensatory redress for consumers should equally be available.
Amendment 327 #
Proposal for a regulation
Recital 68
Recital 68
(68) This Regulation should not be understood as obliging Member States to apply to PEPPs the same tax rules as they would apply to comparable personal pension products under their national laws. However, in application of the national treatment principle, stemming from Articles 21 and 45 of the TFEU and interpreted by the Court of Justice of the European Union, it should be possible for a PEPP that is objectively comparable to a personal pension product (PPP) distributed in a given Member State to benefit from the same tax relief granted to the PPP in this Member State, ifand contractual benefits, such as interest promised, granted to the PEPP saver there is subject to taxin this Member State. This also applies if the PEPP is provided by a provider from another Member State.
Amendment 334 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point a
Article 2 – paragraph 1 – point 1 – point a
(a) is based on a contract between an individual saver and an entity on a voluntary and complementary basis;
Amendment 340 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
(1a) a “partnership” means cooperation between PEPP providers to offer compartments in different Member States, in the view of portability service as referred to in Article 12.
Amendment 363 #
Proposal for a regulation
Article 2 – paragraph 1 – point 13 a (new)
Article 2 – paragraph 1 – point 13 a (new)
(13a) “lump sum” means the full payment of the accumulated pension capital at the end of the accumulation phase;
Amendment 381 #
Proposal for a regulation
Article 2 – paragraph 1 – point 28 a (new)
Article 2 – paragraph 1 – point 28 a (new)
(28a) “partnerships” means cooperation between PEPP providers to offer compartments in different Member States, in the view of portability service as referred to in Article 12. Liability in these partnerships remains in all cases with the primary provider.
Amendment 409 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) institutions for occupational retirement provision registered or authorised in accordance with Directive 2016/2341/EU of the European Parliament and of the Council45 , which cannot cover biometric risks themselves and do not guarantee an investment performance or a certain level of retirement benefits; __________________ 45 Directive 2016/2341/EU of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (recast) (OJ L 354, 23.12.2016, p. 37).
Amendment 484 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
EIOPA and ESMA shall keep a central public register identifying each PEPP authorised under this Regulation, the provider of this PEPP and, the competent authority of the PEPP provider and the list of national compartments offered by the PEPP provider. The register shall be made publicly available in electronic format.
Amendment 485 #
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
EIOPA shall be encouraged to create an information platform to inform PEPP providers about the national requirements applying to PEPPs in each Member State, the tax relief granted to PEPP as well as tax requirements, in order to reduce administrative costs related to the search for national rules applied to PEPP.
Amendment 486 #
Proposal for a regulation
Article 10 – paragraph 1 b (new)
Article 10 – paragraph 1 b (new)
In case of such partnerships, EIOPA and ESMA shall monitor on a regular basis the compliance of the primary PEPP provider and the secondary PEPP provider or providers with this Regulation and its requirements.
Amendment 489 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. In case of using the portability service, PEPP savers are entitled to retain all advantages and incentives granted by the PEPP provider and connected with continuous investment in the same PEPP and shall have the right to simultaneously save in more than one compartment.
Amendment 491 #
Proposal for a regulation
Article 12 – paragraph 2 a (new)
Article 12 – paragraph 2 a (new)
2a. PEPP savers shall have the right to acquire or purchase PEPPs in another Member State than the Member State of their domicile or place of residence.
Amendment 494 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. When proposing a PEPP, the PEPP provider or PEPP distributor shall provide potential PEPP savers with information on which national compartments are immediately availableavailable, either from the PEPP provider or from a registered partner.
Amendment 506 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Three years at the latest after the entry into application of this Regulation, each PEPP provider, or through a partnership with local providers, shall offer national compartments for all Member States, upon request addressed to the PEPP provider. The compartments immediately available shall be listed in the contract between the PEPP saver and PEPP provider.
Amendment 516 #
Proposal for a regulation
Article 13 – paragraph 3 a (new)
Article 13 – paragraph 3 a (new)
3a. The PEPP provider or PEPP distributor shall provide information about the national compartments they offer either directly or through local providers they have signed cooperation agreements with in order to provide the portability service in an extended range of Member States.
Amendment 521 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
Without prejudice to the deadline under Article 13(3), PEPP providers shall ensure that within each individual PEPP account a new compartment could be opened, either by transferral or addition, corresponding to the legal requirements and conditions for using incentives fixed at national level for the PEPP by the Member State to which the PEPP saver moves or where the compartments shall be opened.
Amendment 539 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
1. All contractual arrangements for providing the portability service shall be notified by the PEPP provider to the respective national authority exercising prudential supervision over itEIOPA, and ESMA where appropriate.
Amendment 546 #
Proposal for a regulation
Article 17 – paragraph 2 – introductory part
Article 17 – paragraph 2 – introductory part
2. The information under paragraph 1 shall be filed electronically in a central database held with the national supervisory authority within one month of opeEIOPA within one month of opening the new compartment. The database shall be accessible to the national competent authorities, who shall automatically receive information concerning the newlocal compartment ands in the case of any changes. The database shall contain at least:
Amendment 574 #
Proposal for a regulation
Article 23 – paragraph 2
Article 23 – paragraph 2
2. PEPP providers and PEPP distributors shall comply with Articles 5(2), and 6 to 18 of Regulation (EU) No 1286/2014. The PEPP Key Information Document shall constitute pre-contractual information, including at least the risk assessment and the nature of the risk, risk scenarios, return scenarios, and the cumulative costs to be paid by the PEPP saver to the PEPP provider.
Amendment 596 #
Proposal for a regulation
Article 23 – paragraph 3 – point vii a (new)
Article 23 – paragraph 3 – point vii a (new)
(viia) The PEPP providers shall integrate environmental, social and governance indicators in their investment strategies and take into account environmental and other sustainability risks in their risk mitigation.
Amendment 598 #
Proposal for a regulation
Article 23 – paragraph 3 – point vii b (new)
Article 23 – paragraph 3 – point vii b (new)
(viib) The PEPP provider shall disclose how the environmental, social and governance criteria is integrated in their investment and risk mitigation strategies in the Key Information Document in a standardised and comparable manner.
Amendment 736 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
1. PEPP providers shall offer up to five investment options to PEPP saverin any case offer a default option, and may offer alternative investment options to PEPP savers, up to a total of five investment options.
Amendment 740 #
Proposal for a regulation
Article 34 – paragraph 2
Article 34 – paragraph 2
2. TheAll investment options shall include a default investment option and may include alternative investment optionbe designed by PEPP providers on the basis of proven risk-mitigation techniques, which shall ensure sufficient protection for PEPP savers.
Amendment 749 #
Proposal for a regulation
Article 36 – paragraph 1
Article 36 – paragraph 1
1. The PEPP saver shall be able to opt for a different investment option once every five years of accumulation in the PEPP. The terms for modification of the investment option shall be listed in the PEPP contract.
Amendment 764 #
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. The default investment option shall ensure a minimum capital protection for, allowing the PEPP saver, to recoup a minimum of 40 % of capital invested, including fees, costs and inflation. Capital protection shall be on the basis of a risk- mitigation technique that results in a safe investment strategy. The risk mitigation techniques can take the form of capital protection or de-risking investment strategies.
Amendment 781 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. Capital protection shall allow the PEPP saver to recoup the capital invested at the end of the accumulation phase, the capital invested in real terms, including fees, costs and inflation.
Amendment 784 #
Proposal for a regulation
Article 37 – paragraph 2 a (new)
Article 37 – paragraph 2 a (new)
2a. The risk-mitigation technique shall link the accumulation of capital in the PEPP with the objective of generating future retirement income. Such techniques typically entail a de-risking life-cycle strategy, or a guarantee, optimising future retirement income by weighing risks and returns in the economic and environmental context.
Amendment 797 #
Proposal for a regulation
Article 39 – paragraph 1 – subparagraph -1
Article 39 – paragraph 1 – subparagraph -1
The use of risk-mitigation techniques shall ensure that the investment strategy for the PEPP is designed so as to build up a stable and adequate individual future retirement income from the PEPP and to ensure a fair treatment of all generations of PEPP savers.
Amendment 806 #
Proposal for a regulation
Article 39 – paragraph 1 – point a
Article 39 – paragraph 1 – point a
(a) the risk-mitigation technique to ensureand the rules governing the provision of the minimum capital protection under the default investment option;
Amendment 812 #
Proposal for a regulation
Article 39 – paragraph 1 – point b
Article 39 – paragraph 1 – point b
(b) the risk-mitigation techniques to be applied for the alternative investment options, including life-cycling and full capital guarantee options.
Amendment 813 #
Proposal for a regulation
Article 39 – paragraph 1 – point b a (new)
Article 39 – paragraph 1 – point b a (new)
(ba) provisions for gradually adapting the investment allocation to mitigate the financial risks of investments for cohorts corresponding to the remaining duration;
Amendment 815 #
Proposal for a regulation
Article 40 – paragraph 1
Article 40 – paragraph 1
1. In accordance with Article 3(b)Unless specified in this Regulation, the PEPP conditions related to the accumulation phase of the PEPP shall be determined by Member States unless they are specified in this Regulation., and shall be no less favourable than applicable national rules;
Amendment 834 #
Proposal for a regulation
Article 45 – paragraph 2
Article 45 – paragraph 2
2. The PEPP saver may switch PEPP providers no more frequently than once every five years after conclusion of the PEPP contracshall have the right to switch PEPP providers every five years after conclusion of the PEPP contract, unless more often for grounded reasons such as change of residence to another Member State, and at the moment of retirement.
Amendment 871 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
2. The choice of the form of out- payments for the decumulation phase shall be exercised by PEPP savers upon conclusion of a PEPP contract and can be changed onceat least every five years thereafter and during the last year of the accumulation phase, if applicable. Maximum 10 % of the out-payment can be taken as a lump sum. The form of the remainder of the out-payment shall be chosen by the PEPP saver and take the form of annuities or drawdown payments.
Amendment 892 #
Proposal for a regulation
Article 53 – paragraph 2
Article 53 – paragraph 2
2. EIOPA, together with ESMA regards to Alternative Investment Funds, shall monitor pension schemes established or distributed in the territory of the Union to verify that they do not use the designation “PEPP” or suggest that they are a PEPP unless they are authorised under, and comply with, this Regulation.
Amendment 895 #
Proposal for a regulation
Article 53 – paragraph 3
Article 53 – paragraph 3
3. In coordination with the other European Supervisory Authorities, particularly ESMA with regard to Alternative Investment Funds, EIOPA shall review the annual plans for supervision of the PEPP providers adopted by the competent authorities.