EUROPE - Cross-border arrangements of Institutions for Occupational Retirement Provision (IORPs) have recorded an increase of 14% over the last 12 months, while the number of home states for IORPs has also risen, according to a report by the European Insurance and Occupational Pension Authority (EIOPA).
The authority found that a total of 11 new cross-border IORPs had been reported between June 2010 and June 2011.
Among these 11 new schemes, five were reported as providing defined contribution type benefits, while six were identified as providing defined benefits in the host state, the report said.
However, five IORPs had also ended their activity over the same period.
Overall, 84 cases of IORPs existed at the end of June this year, against 78 a year earlier.
EIOPA attributed those withdrawals to several factors. Reasons cited by the authority included the merger of two existing cross-border IORPs; a corporate restructuring resulting in no cross-border members remaining in the scheme; and the discovery that proposed benefits are unacceptable in the host state.
The report also finds out that Belgium, Cyprus, Ireland, Luxembourg, Norway and the UK have launched new cross-border IORPs over the last year, bringing the number of home states to nine.
In addition, the number of host states has also increased from 22 to 23.
EIOPA said: "In relation to acting as host state, we see greater levels of diversity compared to home state designation. A large majority of EEA states host one or more cross-border IORPs."
In December last year, EIOPA showed in its bi-annual Financial Stability Report that the number of IORPs had stagnated, with seven new schemes launched and five closed.