Efama has sponsored a report on European long-term savings**, recommending in particular the creation of a European pension fund mechanism. What form could it take?
We propose putting in place a mechanism specifically dedicated to retirement planning at European level. This is the first time that such an approach has been put forward. We believe that the pension problem requires creating a dedicated scheme, rather than using an existing instrument, such as life insurance. This is one of the proposals that we intend to support in the framework of the European consultations on pensions (Green Paper) due to be launched this summer.
What will be the technical characteristics of this scheme?
Membership of the scheme will be compulsory, but there will be an op-out clause for individuals. In the absence of single fiscal policy in Europe, the system could benefit from the best available tax benefits in each country in which it is put in place. Another important point, the OCERPS (Officially Certified European Retirements Plans), should be domiciled in a Member State, but will be transferable to another Member State in line with the beneficiary's career changes: they will benefit from a European passport equivalent to that of UCITS.
*European Fund and Asset Management Association
**"Revisiting the landscape of European long-term savings", sponsored by Efama, March 2010