Occupational pension funds

What the EU is doing and why

With the EU populations ageing, it is increasingly important to foster opportunities that enable citizens to achieve more adequate and diversified retirement income. Supplementary pensions – occupational and personal pension schemes – play an important role by adding to public pensions. Therefore, the role of supplementary pensions has been growing.

However, in some Member States, the supplementary pension sector remains underdeveloped. According to the European Insurance and Occupational Pensions Authority (EIOPA), only 20% of European citizens participate in occupational pension schemes.

A more developed EU supplementary pensions sector can play a key role in improving financial security for citizens during retirement. At the same time, it will help to develop EU capital markets and deploy investments to finance EU growth and innovation.

Occupational pension funds benefit from the principles of free movement of capital and free provision of services in the EU. This means that

• pension funds in one EU country can manage occupational pension schemes for companies established in another EU country
• pan‑EU companies can have a single pension fund for all their subsidiaries throughout the EU

Occupational pension funds operating in the EU are regulated by the Occupational Pension Funds Directive (IORP Directive) The Commission has published a proposal to review this Regulation on 20 November 2025.

Relevant legislation