The European pensions industry has been urged to make it easier for multinational employers to approach the market amid concerns that costs are putting firms off.

Speaking at the Cross-Border Benefits Alliance (CBBA) Europe Annual Conference 2022 yesterday, 15 September, Owens Corning director of international pensions, Sjuck de Bordes, warned that some firms may not be approaching the market due to cost and time constraints.

“Unless a multinational has a really enthusiastic boss who says I don’t care how much it costs to do it, but that's rare, people are not going to move into the markets.

“We need to get to a place where you can come to a multinational with a proposition and say, ‘it's easy - this is how it's done, and we'll help you do it’”.

“Just make it easy,” he added in response to a query as to what the industry can do to facilitate solutions for multinational employers. “If you can explain this clearly and make it easy to understand for decision makers and employees, I think this will make the transition easier.”

This was echoed by Aon retirement solutions partner and United Pensions’, Emmy Verbist, who noted that there are limitations in terms of cost and budget, stressing that solutions that are being developed in the current framework require economies of scale, as well as time and energy.

Also commenting on a session on cross-border occupational pension challenges was Unum global vice financial well-being and retirement programme assistant vice president, Carl Gagnon, who suggested that the current pension structure has not been effective for multinational employers.

“There's certainly no economies of scale present throughout the EU for a company like Unum to be able to offer a consistent DC programme across all locations,” he said.

“I don't think in the current regulatory environment, whether that's in countries and localities, or with the IORP II Directive, that there is enough flexibility and portability for companies. The current benefit structure is limited by these geographic and tax regulatory divisions, creating inequities in reward programmes for companies like us.”

Gagnon also suggested that there has not been much effort in this area, stating “I really don't see it coming to fruition beyond talk”.

“I think multinational companies like us... would like to see more developments in regards to the cross-border benefits and also see some opportunities and maybe options to consider,” he stated.

“In other words, I don't think the marketing is there, but the market appetite is there from multinational corporations, but I just don't see anything being fully available.

“I think firms that are currently working to build and support cross-border benefits fees have to be better organised and well resourced, and prepared to handle not only planned conversions and transfers, but have the logistical teams available to help coordinate that work and partner with multinational corporations to handle a very time consuming and complex task.”

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