Regulation 2019/1238 - Pan-European Personal Pension Product (PEPP) - Main contents
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official title
Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP)| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2019/1238 |
| Original proposal | COM(2017)343  |
| CELEX number i | 32019R1238 |
| Document | 20-06-2019; Date of signature |
|---|---|
| Publication in Official Journal | 25-07-2019; OJ L 198 p. 1-63 |
| Signature | 20-06-2019 |
| Effect | 01-01-1001; Application See Art 74 14-08-2019; Entry into force Date pub. +20 See Art 74 |
| Deadline | 01-01-1001; See Art 73.1 14-08-2019; See Art 67.3 And 72 15-08-2020; See Art 28.5 And 30.2 And 33.3 And 36.2 And 37.2 And 40.9 And 45.3 And 46.3 And 66.5 |
| End of validity | 31-12-9999 |
25.7.2019 |
EN |
Official Journal of the European Union |
L 198/1 |
REGULATION (EU) 2019/1238 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 20 June 2019
on a pan-European Personal Pension Product (PEPP)
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
Acting in accordance with the ordinary legislative procedure (2),
Whereas:
(1) |
Union households are amongst the highest savers in the world, but the bulk of those savings are held in bank accounts with short maturities. More investment into capital markets can help meet the challenges posed by population ageing and low interest rates. |
(2) |
Old age pensions constitute an essential part of a retiree’s income and for many people, adequate pension provision makes the difference between a comfortable old age and poverty. They are a precondition for exercising fundamental rights laid down in the Charter of Fundamental Rights of the European Union, including in Article 25 on the rights of the elderly which states: ‘The Union recognises and respects the rights of the elderly to lead a life of dignity and independence and to participate in social and cultural life’. |
(3) |
The Union is facing several challenges, including demographic challenges because of the fact that Europe is an ageing continent. In addition, career patterns, the labour market and the distribution of wealth are undergoing radical changes, not least as a result of the digital revolution. |
(4) |
A substantial part of old age pensions is provided under public schemes. Notwithstanding the exclusive national competence regarding the organisation of pension systems as determined by the Treaties, income adequacy and financial sustainability of national pension systems are crucial to the stability of the Union as a whole. By channelling more of Europeans’ savings from cash and bank deposits to long-term investment products, such as voluntary pension products with a long-term retirement nature, the impact would therefore be beneficial both for individuals (who would benefit from higher returns and improved pension adequacy) and for the broader economy. |
(5) |
In 2015, 11,3 million Union citizens of working age (20 to 64 years old) were residing in a Member State other than the Member State of their citizenship and 1,3 million Union citizens were working in a Member State other than their Member State of residence. |
(6) |
A portable pan-European Personal Pension Product (PEPP) with a long-term retirement nature will increase its attractiveness as a product, particularly to young people and mobile workers, and will help to further facilitate the right of Union citizens to live and work across the Union. |
(7) |
Personal pensions are important in linking long-term savers with long-term investment opportunities. A larger, European market for personal pensions will support the supply of funds for institutional investors and investment into the real economy. |
(8) |
This Regulation enables the creation of a personal pension product which will have a long-term retirement nature and will take into account environmental, social and governance (ESG) factors as referred to in the United Nations-supported Principles for Responsible Investment, insofar as possible, will be simple, safe, reasonably-priced, transparent, consumer-friendly and portable Union-wide and complements the existing systems in the Member States. |
(9) |
Currently, the... |
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