34 Amendments of Bas EICKHOUT related to 2014/0091(COD)
Amendment 292 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) In view of demographic developments in the Union and the situation regarding national budgets, occupational retirement provision is an important complement to public pension systems, but cannot replace the latter as the primary expression of intergenerational solidarity in the provision of adequate, safe and sustainable retirement benefits, an essential public good.
Amendment 356 #
Proposal for a directive
Recital 25
Recital 25
(25) A prudent calculation of technical provisions is an essential condition to ensure that obligations to pay retirement benefits can be met. Technical provisions should be calculated on the basis of recognised actuarial methods and certified by qualified persons. The maximum interest rates should be chosen prudently according to any relevant national rules and in any case should not exceed those used for Life Insurance. The minimum amount of technical provisions should both be sufficient for benefits already in payment to beneficiaries to continue to be paid and reflect the commitments that arise out of members' accrued pension rights.
Amendment 363 #
Proposal for a directive
Recital 27
Recital 27
(27) Sufficient and appropriate assets to fully cover the technical provisions at all times and under suitably prudent assumptions of future returns on assets in order to protect the interests of members and beneficiaries of the pension scheme if the sponsoring undertaking becomes insolvent. In particular in cases of cross- border activity, the mutual recognition of supervisory principles applied in Member States requires that the technical provisions be fully funded at all times.
Amendment 370 #
Proposal for a directive
Recital 28
Recital 28
(28) If the institution does not work on a cross-border basis, Member States should be able to permit temporary underfunding provided that a proper plan is establishedrecovery plan with a clear timeline is established and approved by the competent authority to restore full funding and without prejudice to the requirements of Council Directive 80/987/EEC of 20 October 1980 on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer. 28 __________________ 28 OJ L 283, 28.10.1980, p. 23. OJ L 283, 28.10.1980, p. 23.
Amendment 379 #
Proposal for a directive
Recital 34
Recital 34
(34) The understanding of what constitutes instruments with a long-term economic profile is broad. These instruments are non- transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. These instruments should be understood to include participations, debt instruments in non-listed undertakings and loans provided to them. Non-listed undertakings include infrastructure projects, unlisted companies seeking growth, real estate or other assets that could be suitable for long term investment purposes. Low carbon and climate resilient infrastructure projects are often non-listed assets and rely on long term credits for project financing. Conversely, so called "stranded" assets that derive their value from the assumption that raw materials can be used in the future even though their use would be contradictory to Union social or environmental policy (including health) should not be part of a long term investment strategy and pension schemes should have effective mechanisms for detecting such risks.
Amendment 444 #
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
With the exception of Articles 3420, 22, 23, and 32 to 37, Member States may choose not to apply this Directive, in whole or in part, to any institution located in their territories which operates pension schemes which together have less than 100 members in total. Subject to Article 2(2), such institutions shall nevertheless be given the right to apply this Directive on a voluntary basis. Article 12 may be applied only if all the other provisions of this Directive apply.
Amendment 496 #
Proposal for a directive
Article 14 – paragraph 4 – point b – point i
Article 14 – paragraph 4 – point b – point i
(i) a prudent assessment of the yield on the corresponding assets held by the institution and the future investment returns and/or
Amendment 497 #
Proposal for a directive
Article 14 – paragraph 4 – point b – point ii
Article 14 – paragraph 4 – point b – point ii
(ii) the current market yields of high- quality orbonds or high quality government bonds;
Amendment 499 #
Proposal for a directive
Article 14 – paragraph 4 – point b a (new)
Article 14 – paragraph 4 – point b a (new)
(ba) In any event, the maximum rates of interest used shall not exceed those in use for long term insurance products in the relevant jurisdictions as published by EIOPA in accordance with Article 77e of Directive 2009/138/EC;
Amendment 500 #
Proposal for a directive
Article 14 – paragraph 4 – point d a (new)
Article 14 – paragraph 4 – point d a (new)
(da) where the institution changes the method and basis of calculation of technical provisions, it shall provide a full explanation of the impact of the changes on technical provisions.
Amendment 505 #
Proposal for a directive
Article 15 – paragraph 2 – introductory part
Article 15 – paragraph 2 – introductory part
2. The home Member State may allow an institution, for a limited period of time, to have insufficient assets to cover the technical provisions. In this case the competent authorities shall require the institution to adopt a concrete and realisable recovery plan with a clear time line in order to ensure that the requirements of paragraph 1 are met again. The plan shall be subject to the following conditions:
Amendment 513 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
3. In the event of cross-border activity as referred to in Article 12, tThe technical provisions shall at all times be fully funded in respect of the total range of pension schemes operated. If these conditions are not met, the competent authorities of the home Member State shall intervene in accordance with Article 62. To comply with this requirement the home Member State may require ring-fencing of the assets and liabilities.
Amendment 530 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point a a (new)
Article 20 – paragraph 1 – subparagraph 1 – point a a (new)
(aa) the ‘prudent person’ rule shall not prevent institutions from taking into account the impact of investment decisions on environmental, social, governance or ethical factors;
Amendment 548 #
Proposal for a directive
Article 22 – paragraph 1
Article 22 – paragraph 1
1. Member States shall require all institutions to have in place an effective system of governance which provides for sound and prudent management of their activities. That system shall include an adequate transparent organisational structure with a clear allocation and appropriate segregation of responsibilities and an effective system for ensuring the transmission of information. The system of governance shall be subject to regular internal review. The system of governance shall require environmental, social as well as governance factors related to investment assets to be considered in investment decisions, involve relevant stakeholders and shall be subject to regular internal review.
Amendment 555 #
Proposal for a directive
Article 23 – paragraph 1 – point a
Article 23 – paragraph 1 – point a
(a) their professional qualifications, knowledge and experience, or those of the advisers on which they rely, are adequate to enable them to ensure a sound and prudent management of the institution and to properly carry out their key functions (requirement to be fit); and
Amendment 586 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 1
Article 26 – paragraph 1 – subparagraph 1
Member States shall require institutions to have in place an effective risk-management system comprising strategies, processes and reporting procedures necessary to identify, measure, monitor, manage and report on a continuous basis, to competent authorities and regularly to members and beneficiaries, the risks, at an individual and at an aggregated level, to which they are or could be exposed, and their interdependencies.
Amendment 591 #
Proposal for a directive
Article 26 – paragraph 2 – point f a (new)
Article 26 – paragraph 2 – point f a (new)
(fa) the detection and monitoring of new or emerging risks relating to climate change, use of resources and the environment.
Amendment 602 #
Proposal for a directive
Article 29 – paragraph 2 – point h
Article 29 – paragraph 2 – point h
(h) a qualitative and, where feasible, quantitative assessment of new or emerging risks relating to climate change, use of resources and the environment. In particular, a thorough assessment of the regulatory risk to financial assets resulting from activities, such as fossil fuel extraction and processing where future regulations in line with Union or global policy objectives are likely to substantially diminish the value of those assets.
Amendment 617 #
Proposal for a directive
Article 32 – paragraph 1
Article 32 – paragraph 1
Member States shall ensure that every institution located in their territories prepares and, at least every three years, reviews a written statement of investment- policy principles. That statement is to be revised without delay after any significant change in the investment policy. Member States shall provide for this statement to contain, at least, such matters as the investment risk measurement methods, the risk-management processes implemented and the strategic asset allocation with respect to the nature and duration of pension liabilities and how the investment policy takes environmental, social and governance issues into account. The statement shall be made publicly available on a website.
Amendment 635 #
Proposal for a directive
Article 40 – paragraph 1
Article 40 – paragraph 1
(1) Member States shall require institutions to draw up a concise document containing key information for each member (the ‘pension benefit statement’).
Amendment 643 #
Proposal for a directive
Article 42
Article 42
Amendment 665 #
Proposal for a directive
Article 50 – paragraph 1 – point a
Article 50 – paragraph 1 – point a
(a) the target level of benefits per month at the retirement age under best estimate and worst case assumptions;
Amendment 667 #
Proposal for a directive
Article 50 – paragraph 1 – point b
Article 50 – paragraph 1 – point b
(b) the target level of benefits per month two years before the retirement age under best estimate and worst case assumptions;
Amendment 669 #
Proposal for a directive
Article 50 – paragraph 1 – point c
Article 50 – paragraph 1 – point c
(c) the target level of benefits per month two years after the retirement age under best estimate and worst case assumptions.
Amendment 673 #
Proposal for a directive
Article 50 – paragraph 3 – point a
Article 50 – paragraph 3 – point a
(a) the expected amount of capital accumulated until two years before the retirement age under best estimate and worst case assumptions relevant for the scheme;
Amendment 675 #
Proposal for a directive
Article 50 – paragraph 3 – point b
Article 50 – paragraph 3 – point b
(b) the expected amount of capital accumulated until the retirement age under best estimate and worst case assumptions relevant for the scheme;
Amendment 677 #
Proposal for a directive
Article 50 – paragraph 3 – point c
Article 50 – paragraph 3 – point c
(c) the expected amount of capital accumulated until two years after the retirement age under best estimate and worst case assumptions relevant for the scheme;
Amendment 680 #
Proposal for a directive
Article 50 – paragraph 4 – introductory part
Article 50 – paragraph 4 – introductory part
4. The assumptionbest estimate and worst case assumptions underlying the scenarios referred to in paragraph 3 shall take into account the following factors:
Amendment 681 #
Proposal for a directive
Article 50 – paragraph 4 – point a
Article 50 – paragraph 4 – point a
(a) the annual rate of nominal investment returns and the risk factors referred to in Article 51 paragraph 3(b);
Amendment 682 #
Proposal for a directive
Article 50 – paragraph 4 a (new)
Article 50 – paragraph 4 a (new)
4a. The worst cases should be based on scenarios for the assumptions that represent extreme but plausible outcomes and approved by the relevant competent authority;
Amendment 701 #
Proposal for a directive
Article 53 – paragraph 1 – point d a (new)
Article 53 – paragraph 1 – point d a (new)
(da) where and how to obtain the documents mentioned in Articles 31 and 32.
Amendment 705 #
Proposal for a directive
Article 54 – paragraph 1 – point a – point ii
Article 54 – paragraph 1 – point a – point ii
Amendment 706 #
Proposal for a directive
Article 54 – paragraph 1 – point b
Article 54 – paragraph 1 – point b
(b) the format, layout, structure and sequencing of the pension benefit statement, comprising the information referred to in Articles 44(2) to 53, whilst taking into account the conditions in Articles 41(1) and Article 42.
Amendment 707 #
Proposal for a directive
Article 55 – paragraph 1
Article 55 – paragraph 1
The institution shall ensure that prospective members are informed about all the features of the scheme and any investment options including information on how environmental, climate, social and corporate governance issues are considered in the investment approach and in particular, information about its exposure to assets whose value may be negatively impacted by legislation necessary to meet the Union’s climate targets.