EEC - Pension Objectives 
 

Commission's 10 objectives - 13-07-2001

The Commission adopted on 3rd July a Communication on Supporting national strategies for safe and sustainable pensions through an integrated approach outlining 10 objectives. Once the objectives have been agreed indicators will then need to be devised. We look forward to receiving your comments regarding the objectives and suggestions in respect of the indicators.

The 10 objectives can be summarised as follows:

1) A decent standard of living
2) Improve access to pensions
3) Achieve a high level of employment
4) Discourage early retirement
5) Ensure sustainable public finances
6) Ensure intergenerational fairness
7) Regulatory frameworks for pensions
8) Eliminate gender discrimination within pension systems
9) Improve transparency within pension systems
10) Ensure pensions are flexible.

The Objectives as stated within the Communication

1. ‘Ensure that all older people enjoy a decent living standard, share in the economic well-being of their country and are able to participate actively in public, social and cultural life.’

2. ‘Provide access for all individuals to appropriate pension arrangements necessary to maintain the living standard of their choice after retirement due to old age or invalidity and that of their dependants in the event of death.’

3. ‘In the context of the Employment Strategy achieve a high level of employment so that the ratios between the active and the retired remains as favourable as possible.’

4. ‘Ensure that pension systems, and in particular early retirement and invalidity schemes, and their interactions with tax-benefit systems, offer effective incentives for the participations of older workers; that workers are not encouraged to take up early retirement and are not penalised for staying in the labour market beyond the standard retirement age; and that pension systems facilitate the option of gradual retirement.’

5. ‘In the context of sustainability of public finances as well as of the need to cope with the budgetary impact of ageing populations, ensure that public spending on pensions is maintained at a level in terms of percent of GDP that is compatible with the Growth and Stability Pact. This may include setting up dedicated reserve funds, if considered appropriate by the authorities.’

6. ‘Strike a fair balance between the active and the retired through appropriate adjustments to the levels of contributions and taxes and of pension benefits.’

7. ‘Ensure through appropriate regulatory frameworks at national and European level and through sound management, that private funded pension schemes will continue to provide, with increased efficiency and affordability, the pensions to which scheme members are entitled.

8. ‘Ensure that pension systems are compatible with the requirement of flexible and security on the labour market, that labour market mobility within Member States and cross borders and non-standard employment forms do not result in undue losses of pension entitlements and that self- employment is not discouraged by pension systems.’

9. ‘Review pensions systems with a view to eliminating discrimination based on sex while addressing the sources of gender-related inequalities in pension entitlements (e.g. career breaks for family reasons, actuarial factors.)

10. ‘Make pension systems more transparent, predictable, and adaptable to changing circumstances. Provide reliable and easy-to-understand information on the long-term perspectives of pension systems including assessments of the impact of demographic, social and economic change and the impact of envisaged policy measures on the performance of pension systems, notably regard to the likely evolution of benefit levels and contribution rates. Improve the methodology basis for efficient monitoring of pension reforms and policies.