Ireland has a unique chance to shape legislation that will define pension provision across Europe and help EU member states address their pension gaps, European Insurance and Occupational Pensions Authority (EIOPA) chairperson, Petra Hielkema, has said.

In a speech at the Pensions Authority Conference, Hielkema noted that Ireland had presidency of the Council of the EU, and its leadership in the negotiations of the IORP II Directive and the PEPP Regulation would be “pivotal”.

“These regulations present our best opportunity to build stronger, more sustainable pension systems that work for all Europeans,” she added.

Looking at the Irish pensions sector, Hielkema said the country was going through the most significant consolidation wave Europe had ever seen, with 10s of thousands of smaller schemes set to wind up and consolidate into larger schemes.

Hielkema argued that this was a positive development that could bring greater stability and efficiency to the industry, with benefits to members and beneficiaries.

However, she warned that this was a major transition for trustees, sponsors, members, providers and the Pensions Authority, and members’ interests needed to be protected, governance must remain strong, and risks needed to be properly managed.

“One of the key challenges will be maintaining trust during and beyond this transition,” Hielkema continued.

“Members need to feel confident that their pensions are secure, even as their schemes transfer.

“Clear and timely communication about what is happening and why is essential to maintaining trust and helping members understand the changes taking place and potential impact of these changes on savers.”

Hielkema also highlighted the new authorisation regime as another major change, representing a “fundamental shift” in how pension schemes operate.

While she acknowledged the change represented a substantial undertaking for trustees and schemes, Hielkema said it was not about adding layers of bureaucracy, it was about providing a framework that allows schemes to deliver the best possible outcomes for members.

“The key to success will be preparation,” she stated. “This isn't something to leave until the last minute.

“I would urge all schemes to begin their preparations now - assessing the current position, identifying any gaps, and working with the Pensions Authority to ensure you're ready. The earlier you start this process, the smoother your transition will be.”

For trustees to be able to meet their obligations, Hielkema said good data was a prerequisite, with consolidation meaning that rigorous costs and charges scrutiny had never been more critical to ensuring members and beneficiaries received fair value.

“Quality data is also critical for delivering a national pension tracking system,” she added.

“Irish workers should be able to access, in one place, their existing and future entitlements from both state and private pensions.”

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