Eiopa reports 14% growth in Iorps
Wednesday 27 July 2011 - by Jacqui Street
The European Insurance and Occupational Pensions Authority says the market for cross-border arrangements of Iorps remains small but is growing.
"Of the 11 Iorps reported as newly engaging in cross-border activity, five were reported as providing defined contribution type benefits in the host state, and six were identified as providing defined benefits in the host state," said Eiopa.
The majority of cross border activity occurred between Ireland and the United Kingdom with the UK now hosting 24 Iorps from Ireland, and Ireland hosting 13 Iorps originating in the UK.
In an additional report, Eiopa surveyed pension scheme members in 17 EU countries about the risks they perceived to their defined contribution schemes.
The report notes that defined contribution schemes are increasingly favoured over defined benefit schemes, but this change poses more risks to members.
The survey found those in defined contribution facilities were most concerned about the market risk to their accumulated assets and not having enough contributions in their initial joining phase.
The survey also found those in pension schemes were worried about a lack of member understanding and the risk of inflation as their pensions accumulated.
Eiopa warns that pension members will bear the most risk in defined contribution schemes but have the least amount of say in the funds' direction.
The authority hints that programmes for greater member education and awareness should be included in future defined contribution schemes.
|Login||Register||Most read||Most commented|
Will markets in 2012 have a tougher time than 2011?