The EPP Group voted in favour of a legal framework for a new Pan-European Personal Pension Product (PEPP) on Monday evening. “This is good news for European consumers. This will be a safe, cost-effective and reliable product with EU branding and backing. It is an additional feature of our pension landscape and will not cut across the Member States' existing national pension systems", said Brian Hayes MEP, after the European Parliament's Committee on Economic Affairs approved the changes to the law he suggested.
“In Europe, we have a potential pension time bomb coming down the track. Populations are ageing and the old age dependency ratio is increasing. State pension schemes will come under more pressure in the future and that is why we need to ensure that citizens have access to additional pension products. With this proposal, people will be encouraged to put more aside for their retirement needs", said Mr Hayes, Vice-Coordinator of the Parliament's Economic Committee.
Parliament will now enter into negotiations with Member States to get a final agreement on the legislation.
"Such a pension product can be easily transferred from one Member State to another. It’s the product for the new mobile workforce”, MEP Hayes added.
The EPP Group is the largest political group in the European Parliament with 219 Members from 28 Member States