EUROPE – Cross-border Institutions for Occupational Retirement Provision (IORPs) seem to be slowly loosing ground in Europe as their overall number drops from 84 to 82.
According to a report on cross-border IORP activity by the European Insurance and Occupational Pension Authority (EIOPA), two new cross-border vehicles were registered in Europe between June 2012 and June this year.
The new IORPs were reported as providing defined contribution (DC) type benefits in their host states.
One of the two pension funds, a Greek vehicle, was launched in Luxembourg, while the second was launched by a UK company in Ireland.
However, over the period, three IORPs were reported as having ceased cross-border activity over the last 12 months.
This is the first time in the last three years the cross-border IORP market has recorded a drop.
Additionally, among the 82 cross-border pension funds listed, most are understood to cover pre-existing cross-border membership between the UK and Ireland, which have long co-operated in occupational pensions.
According to EIOPA's new report, Ireland has 25 cross-border IORPs in total, making it the top destination among all EU countries.
However, EIOPA also stated that the country lost one vehicle over the past year.
Similarly, Luxembourg and the UK have also seen one cross-border IORP each closing up shop in their respective jurisdictions.