European Association of Paritarian Institutions of social protection

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social Protection

European Association of Paritarian Institutionsof social protection

AEIP


AEIP: who we areAEIP is a lobbying organization, aimed at influencing the European Union’s Institutions in their policy and law making process

AEIP is therefore based in the core of the European Union’s quarter in Brussels

AEIP is a not profit organization (Association) and it represents, through its members (paritarian institutions of social protection) about 75 million Europeans and 1.300 billion € of assets


AEIP: who we representAEIP represents –and is made up of- those institutions of social protection which are jointly set up and managed by the social partners (paritarian institutions):

- Pension institutions managing statutory schemes ”1 pillar”;- Pension funds (supplementary to the State pensions “2

pillar”);- Healthcare institutions (providing healthcare benefits)- Unemployment institutions (benefits for the unemployed)- Paid holiday institutions (covering the pay during holidays)- Health and safety at work institutions (providing trainings,

etc.)


A paritarian institution:

Employers

EmployersAssociations

Employees

Trade Unions

MANAGEMENT BOARDEqual (parity in) number of employers’ and unions

representativesfrom “parity”- “Paritarian” )

Collective agreement setting up the social institution (and pension plan)


Members (2011)

http://www.bgbau.de/d/pages/index.html

http://www.trianon.ch/index.htm


Commissions

Commission I – Coordinated Retirement Schemes (1st pillar pensions)

Commission II – Pension Funds (2nd pillar pensions) Commission III – Health and Provident Funds Commission IV – Paid Holidays schemes Commission V – Health and Safety at Work

Task Forces

More and more at industry

wide level

Task Force “Construction” (Collecting the Pension funds of the construction personnel sector)

Task Force “Health and Care” (Collecting the Pensions and social funds of the healthcare personnel sector)

Task Force Metalworkers (Collecting the Pension funds of the metalworkers sector)

Task Force Food and Agriculture sector: in a close future

Task Force “Solvency” (Facing the Solvency Rules matters of P.F.)

Territorial and Regional pension and other social funds (about the local/regional social funds set up by social partners)Other

Working Groups

Scientific Council

Working groups of AEIP

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionParticipation of AEIP to

the working groups of works of the EU

Consultation of the Commission in the field of

the simplification of the 883/04 (former 1408/71)Participation in the Pension Forum of the

European CommissionMember of the Consultative Panel of EIOPA in

Frankfurt

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionOur current

cooperation:


A mixed system –made up of PAYG and Fundedelements- seem to be preferable (diversification

ofthe risks of Demographic Dependency Ratio on theone hand; and Financial Turmoil on the other

hand).

So multi-pillar, or multi-layer system would be better, if well organized (but with a second pillarvery different than some adopted in the 1990s inCentral and Eastern Europe)

According to us (1/3):

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionAccording to us

(2/3):Sector-wide or companies’ occupational pensions,

1)set up through collective barganing agreements,2)and managed together by representatives ofemployees and employers

represent the BEST MODEL OF GOVERNANCE(equal representation of the parties involved, more reliability towards the members of the pensionscheme and non-for profit goals): paritarian model

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionAccording to us (3/3):

Those occupational pensions,

3) Would be more efficient if compulsory for all the workers and the employers of their sector

4)They should be collective funds (not based on individual accounts) in order to provide solidarity among their members

5)They should be non-business oriented, and they should be in great part exempted by EU competition/market rules


The importance of solidarity in a collective (mandatory) pension

fund1) As it is based on collective accounts, non-

contributory periods are covered by the fund itself

2) Mandatory participation into the same (non profit) fund:

- Eradicates all the costs of advertising;

- Being big, the management fees are very reduced - Allows long term investments granting major returns

and being less vulnerable on the crisis times

3) In a period of crisis, all the participants (and even the pensioners) can share the sacrifices, by relieving major burdens for everyone

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionEs. administrative cost per participant in a bigger fund

0

100

200

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500

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800

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10 100 1000 10000 100000 1000000

number of participants

adm

inis

trativ

e co

sts

(EUR

O a

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Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionEs. Cost of pension funds vs Life

Insurers(Research of the Dutch Central Bank)

Life insurers Pension funds% ofcontribution

% ofassets

% of contribution

% ofassets

Administa-tive costs

12,9 1,27 4,4 0,15

Profit 11,0 1,08 - -

Total 23,9 2,35 4,4 0,15

Association Européenne des Institutions Paritaires de Protection SocialeEuropean Association of Paritarian Institutions of Social ProtectionCurrent pension issues of primary concern for us (1/2)

- The current initiatives for a NEW framework for the pensions in Europe (the 20 initiatives listed in the White Paper on pensions of the European Commission)

- The questions concerning the legal competence on pensions between EU and Members States

- Ongoing initiatives on Governance, Solvency and Supervision of pension funds carried out by the EU


- The sustainability and adequacy of pensions in Europe (retirement age; labor market reforms; shift from DB to other formulas)

- Mobility of workers within the EU as for the acquisition and safeguard of their pension rights (coordination of different pension systems, cross border pensions, portability of social rights, etc.)

- Promotion of cross-border pensions plans’ initiatives at Company level or at industry-wide level managed by the Social Partners

Current pension issues of primary concern for us (2/2)


Protocols of Cooperation

Transatlantic cooperation


Next Annual Transatlantic Conference (you are all

welcome!) Building for the Future:

Tackling Together the Global Challenges of Social Protection

Paris, 27-28 June 2012


THANK YOU FOR YOUR ATTENTION!

Francesco Briganti Director of the AEIP

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

Documents

European Association of Paritarian Institutions of social protection