IORPs frozen

CEIOPS has just published its annual report on market developments. Given the uncertainty surrounding new legislative developments, it is unsurprising that the net new growth of cross-border IORPs within the EEA has ground to a virtual halt. As of 1 June, there were 78 active IORPs, compared to last year's 76. Interestingly, the gross growth of 7 has been almost entirely compensated by 5 withdrawals that were exclusively based in the UK, whereas the new IORPs are based in Austria, Belgium, Ireland and Liechtenstein (2 each).

IORPs up 46%

The number of cross-border IORPs active in the EEA has risen from 48 to 70 over a time period of 18 months, according to CEIOPS' 2008 Report on Market Developments. Cutoff dates were January 2007 and June 2008, respectively. The bulk of those cross-border plans is still focused on the country pair Ireland - UK, representing 50% of all plans, down from 60% on last count. Most of the activity happened in Austria, Belgium and Luxembourg. Removing the basis effect of plans that have been in operation prior to the implementation of the Pensions Directive, the growth in plan numbers increases to 244%.

While it's good to see some activity picking up, it's still too slow to constitute significant momentum, even if rebased.

Asset pooling

epn has an interesting story mostly about the competition between asset pooling locations in Ireland, the Netherlands and Luxemburg. The Belgian approach with its relaxed solvency regime gets bad marks, especially with regards to next year's Commission review of the Directive and its transposition. 

2007 asset allocation survey

Mercer IC published its periodic asset allocation survey of European pension funds. Of the 651 funds surveyed, 75% still reside in the UK, thus the survey's cross country comparison may not be entirely reliable (via VF).

Mandatory pensions in Ireland? [IE]

(IPE) As indicated earlier, the Irish Department of Social & Family Affairs has now come forward with the report "Special Savings for Retirement".

At first blush the report appears to be a valuable comparative analysis of policy options, deserving of a closer look. It is not entirely clear however what the substantive recommendation would amount to, even though it appears to include a new mandatory supplementary component. But this constructive ambiguity is probably part & parcel of the political process in Ireland, which is expected to be advanced by the arrival of a subsequent Green Paper on pensions, due within a year's time.

Pensions Review [IE]

Earlier this year, the Irish Pensions Board has reviewed the nation's pensions system. This week, it has delivered a more in-depth analysis of options for mandatory and quasi-mandatory second pillar system enhancements to the Minister of Social Affairs. This analysis does not appear to be available at this point.

It is of particular relevance to the Liechtenstein and Swiss point of view because those countries' mandatory second pillar systems are technically (and erroneously, in our view) considered to be first pillar by the EU Commission. This has some wide ranging implications.