The objective of the IORP directive to stimulate a robust internal market for workplace pensions “remains unfulfilled”, according to the European Insurance and Occupational Pensions Authority (EIOPA).

Publishing its 2023 report on recent developments on cross-border iorps, EIOPA said end of 2022 data shows that the number of cross-border iorps active in the European Economic Area (EEA) has remained low and unchanged from the previous year. There are just 31 iorps operating across borders.

“These findings, together with no indications for a rebound in the foreseeable future, suggest that the original objective of the IORP Directive to stimulate a robust internal market for workplace pensions remains unfulfilled,” EIOPA stated.

Within the EEA, cross-border IORPs collectively represent approximately 100,000 members and beneficiaries, managing assets totalling around €10.6bn. Although there was a slight increase in membership compared to the previous year, a significant reduction in assets and liabilities occurred due to the closure of one IORP and weak financial market performance, the report stated.

Most cross-border iorps are concentrated in only a few countries, with all cross-border iorps originating from eight specific member counties. This is an increase of one member state from the previous year, stemming from the establishment of the Latvian cross-border iorp.

Belgium maintains its position as the home country with the broadest geographical coverage, covering 14 different host countries. Meanwhile, the Netherlands continues to host the highest number of cross-border IORPs.

“The increasing engagement of sponsoring undertakings with cross-border IORPs is noteworthy. This upward trend persists despite the stabilisation in the number of cross-border IORPs and underscores the potential of such arrangements once initial challenges related to their establishment have been overcome,” EIOPA said.

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