The IORP II revision puts the future of pension provision in the spotlight.

On 22 and 23 June, Members of the European Parliament exchanged views on the proposed directive to strengthen the framework for occupational pensions (IORP II revision). Through the proposed revision, the European Commission aims to further develop the European framework for occupational pensions. The proposal forms part of a broader package of measures to strengthen supplementary pension provision, presented by the Commission in November 2025 as part of the Savings and Investments Union. From the Commission's perspective, occupational and personal pensions should in future not only contribute to providing adequate retirement income but also play a stronger role as a source of long-term capital for investment.

Discussions in the European Parliament

The European Commission’s plans have already met with criticism in the European Parliament. The Committee on Economic and Monetary Affairs (ECON) is the lead committee responsible for the IORP II revision; the Committee on Employment and Social Affairs (EMPL) is contributing an opinion. During a debate on the draft reports, MEPs from several political groups warned against encroaching on national competences and disrupting tried-and-tested occupational pension schemes. Representatives from the EPP, S&D, ECR and PfE also expressed concerns about a greater focus on directing pension assets towards industrial or economic policy objectives.

The role of supplementary pension provision

According to the Commission, occupational and personal pensions should in future serve as a key source of risk capital. To encourage wider participation, the Commission proposes, among other measures, automatic enrolment with an opt-out option, pension tracking services and a pension dashboard. It also seeks to remove potential barriers to investment in equities and venture capital. At the same time, the European framework for institutions for occupational retirement provision is to be modernised and strengthened.

Implications for pension provision in Germany

The proposed reforms would particularly affect Germany's collectively organised occupational pension system. The plans envisage greater harmonisation of products and governance structures, as well as rules that have so far been designed primarily with private financial products in mind. This could result in higher costs and additional capital requirements, with potential implications for well-established national pension arrangements.

With regard to the first pillar, the Commission emphasises that supplementary pension provision is intended to complement, rather than replace, the statutory pension scheme. Nevertheless, the greater mobilisation of private savings could reignite the debate on the relationship between statutory, occupational and private pension provision.

What happens next?

Members of the ECON Committee have until 16 July to table amendments to the draft report. On Friday, 26 June, the Permanent Representatives of the Member States to the European Union (Coreper) approved the EU Council’s general approach to the revision of the IORP II revision. This is likely to further heighten the debate on the role of occupational pension schemes within the framework of the Savings and Investments Union.