Key Takeaways
- • The European Parliament's Committee on Economic and Monetary Affairs (ECON) adopted its negotiating mandate on the IORP II occupational pension directive revision by 33 votes to 18, with 3 abstentions, dropping a proposed mandatory 2% venture capital allocation for large pension funds.
- • The removed provision would have applied to pension funds managing more than EUR 1 billion in assets, requiring at least 2% of holdings to be invested in venture capital.
- • The committee also stripped plans to expand EIOPA's powers and to introduce a single EU-wide disclosure form, while moving to ease national investment limits for certain asset classes.
- • A lighter regime for newly established pension institutions during their first three years, proportionate risk assessment including climate factors, and a ban on using pension data for marketing are included in the adopted position.
- • Trilogue negotiations with the Council and European Commission are reportedly targeted to begin in January 2027, though the timetable had not been officially confirmed.
Summary
The European Parliament's Committee on Economic and Monetary Affairs has adopted its negotiating mandate for the revision of the IORP II directive governing occupational pension funds and retirement providers across the EU. According to reports dated 10 November 2026, the committee backed the mandate by 33 votes to 18, with 3 abstentions, moving the legislative package into its decisive parliamentary stage.
The most consequential change for institutional allocators is the removal of a proposed obligation for large pension funds to invest at least 2 percent in venture capital. The provision, tabled by rapporteur Damian Boeselager of the Greens/EFA group, would have applied to pension funds managing more than EUR 1 billion in assets. Committee members rejected the quota and struck it from the text entirely.
The committee also removed proposals to grant additional powers to the European Insurance and Occupational Pensions Authority (EIOPA) and to introduce a single EU-wide disclosure form. In their place, the adopted position emphasises easing investment rules, with national investment limits for certain asset classes set to fall away. Newly established occupational pension institutions would operate under a lighter regime during their first three years, and risk assessment requirements, including climate factors, would scale proportionally to each institution's size and operational complexity.
On member information, the draft introduces new data safeguards, including a prohibition on using pension data for marketing purposes, alongside strengthened disclosure obligations to policyholders. A standardised benefits overview is envisaged to allow people to compare national and cross-border retirement schemes directly.
The committee's decision must still be formally announced in the European Parliament's plenary session before talks with the Council of the EU and the European Commission can begin. Trilogue negotiations are reportedly targeted for January 2027, although the precise timetable had not been officially confirmed. The outcome of these rounds will determine which compromises between the Parliament and member states appear in the final directive.
The most consequential change for institutional allocators is the removal of a proposed obligation for large pension funds to invest at least 2 percent in venture capital. The provision, tabled by rapporteur Damian Boeselager of the Greens/EFA group, would have applied to pension funds managing more than EUR 1 billion in assets. Committee members rejected the quota and struck it from the text entirely.
The committee also removed proposals to grant additional powers to the European Insurance and Occupational Pensions Authority (EIOPA) and to introduce a single EU-wide disclosure form. In their place, the adopted position emphasises easing investment rules, with national investment limits for certain asset classes set to fall away. Newly established occupational pension institutions would operate under a lighter regime during their first three years, and risk assessment requirements, including climate factors, would scale proportionally to each institution's size and operational complexity.
On member information, the draft introduces new data safeguards, including a prohibition on using pension data for marketing purposes, alongside strengthened disclosure obligations to policyholders. A standardised benefits overview is envisaged to allow people to compare national and cross-border retirement schemes directly.
The committee's decision must still be formally announced in the European Parliament's plenary session before talks with the Council of the EU and the European Commission can begin. Trilogue negotiations are reportedly targeted for January 2027, although the precise timetable had not been officially confirmed. The outcome of these rounds will determine which compromises between the Parliament and member states appear in the final directive.
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