Hayes selected as lead negotiator for the EPP on the Pan-European Personal Pension plan
Brian Hayes MEP has been appointed as the EPP’s lead negotiator on a piece of EU legislation which will develop a new Pan-European personal pension regime. This is a new legislative proposal from the European Commission that introduces a new standalone personal pension product, with an EU branding, that can be bought or sold anywhere in the EU.
“If we get this right, the Pan European Pension product (PEPP) has a real opportunity to improve all our national pension systems in the EU.
“In Ireland we have a pension time bomb coming down the tracks. Only about 41% of the working population is covered by a private pension scheme, whether that is a workplace pension or a personal pension. That means that hundreds of thousands of workers could be dependent on a state pension into the future.
“Taoiseach Leo Varadkar recently gave a welcome commitment that we will see a roadmap published for the introduction of an auto-enrolment scheme for private workplace pensions. We need this in Ireland and it will make a huge difference.
“The state pension system is going to come under increasing pressure into the future. We need to encourage Irish citizens to supplement their state savings with private pensions.
“As EPP lead negotiator for the PEPP proposal, I believe the EU can help all Member States in providing clear options for a generation that do not currently have pensions. Having previously worked as rapporteur on the EU’s occupational pension funds Directive, I am looking forward to building on that work and further developing the EU’s pension market.
“A pan European personal pension product with EU branding and backing will give consumers certainty amongst the array of choice in the pensions industry. It’s the product for the new mobile workforce.
“This is a product that can be easily transferred from one Member State to another. Consumers should be able to switch pension providers easily if they can find a cheaper offer in another Member State. Consumers should be able to shop around to get value-for-money products – that’s why we have a single market.
“When completed, this will be an important step for the development of a single market for pensions in the EU. I think there is a lot more we can do to integrate our private pension systems and allow consumers to transfer their pension benefits to other Member States.”