EUROPE - The European Commission is preparing to launch a pensions green paper by the middle of this year on the creation of an EU framework for pensions.

A spokeswoman for the European Commission's Employment, Social Affairs and Inclusion DG confirmed the paper will be produced by the ESAI, Internal Markets & Services and Economic and Monetary Affairs director-generates, and will assess the need to update EC legislation, regulation and coordination "in light of the ageing population and new challenges stemming from the crisis, to contribute to the safeguarding of European pension systems".

The consultation paper will invite responses to assess how the EU framework should be updated, as part of a move to help member states deliver "adequate and sustainable pensions".

It is unclear at this stage whether the paper will assess the entire pensions arena of state, occupational and private pension provision or whether it will look at funded pensions only.

Similarly, the EC had planned to review the IORP Directive and other issues related to pensions this year, so it is uncertain whether this paper will be launched ahead of those or incorporate analysis of these key documents within the green paper.

What the paper will do is question how obstacles to pensions mobility might be removed, in a bid to improve pensions portability for mobile workers.
Once the green paper consultation closes, the European Commission could either launch specific initiatives targeting certain areas of pensions or present a broader White Paper explaining how an EU pensions framework might be updated.

It is understood the joint review by the Social Protection Economic Policy Committees - due to issue its interim report in June 2010 - could also feed into this project, while the EC will also support and contribute to a review by the Economic Policy Committees reporting to ECOFIN councils, on member states' national pension strategies.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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