Adequate, safe and sustainable pensions

In 2012 the European Commissioned published a White Paper on ‘adequate, safe and sustainable’ pensions to look at the challenges that Members States face in their pension systems, particularly the financial sustainability of pension systems with an ageing population, low labour market participation of women and older workers, and the need to maintain pension adequacy. The paper also proposed EU-level and national measure that could address these challenges, such as the Europe 2020 Strategy, the support of the development of private retirement savings and a better reporting on the development on ageing.

Two years later, the Commission publishes an ‘Implementation plan on the EU paper on Pensions’ that lists the initiatives undertaken since 2012, including the European Year for Active Ageing and Solidarity between Generations; a Social Protection Committee report on pension adequacy; and a Eurofound report on the role of governments and social partners in keeping older workers in the labour market. Within the European Semester, the Commission also calls on Member States in the Country-specific Recommendations to reform their pension systems and to enhance the participation of older workers in the labour market in order to ensure adequacy and sustainability of pensions in the future.

The European Commission held a high-level international conference on the 26th of March to look at the progress on pensions in the past two years. Michel Barnier, Commissioner for the Internal Market and Services, highlighted the Commission’s efforts to boost the contribution of complementary retirement savings to safe and adequate pensions, whilst Olli Rehn, the Commission’s Vice-President responsible for Economic and Monetary Affairs and the Euro, explained how the economic policy coordination of the European Commission promotes reforms that maintain the sustainability of public pension schemes.

László Andor, Commissioner for Employment, Social Affairs and Inclusion, described the efforts under his services to rebalance working and retirement years. He mentioned the Guiding Principles for Active Ageing and Solidarity between Generations adopted by the Council of the European Union in 2012 that give guidance to Member States to promote active ageing. He also underlined the Commission’s role in giving guidance to Member States to reform their pension systems in the European Semester Process.

Last year, 15 Member States received Country-specific Recommendations on pensions which included: raising pensionable age and linking it to life expectancy, implementing reforms that improve the ability of women and men to work longer and to promote supplementary pension schemes. In order to support this, the Commission is working on a strategic framework on safety and health at work, as well as on a directive that improves the pension rights of mobile workers which is foreseen to be adopted in April. The Commission is also working on consumer protection in third-pillar retirement products and information about pensions and transparent schemes arrangements. Financial support for pension and employment reforms in Member States can be provided under the European Social Fund.

Resources

2012 White Paper. An Agenda for Adequate, Safe and Sustainable Pensions
2014 Implementation plan on the EU paper on Pensions
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