General provisions
1. PEPP providers shall draw up a concise personalised document to be provided during the accumulation phase containing key information for each PEPP saver taking into consideration the specific nature of national pension systems and of any relevant law, including national social, labour and tax law (PEPP Benefit Statement). The title of the document shall contain the words ‘PEPP Benefit Statement’.
2. The exact date to which the information in the PEPP Benefit Statement refers shall be stated prominently.
3. The information contained in the PEPP Benefit Statement, shall be accurate and up-to-date.
4. The PEPP provider shall make the PEPP Benefit Statement available to each PEPP saver annually.
5. Any material change to the information contained in the PEPP Benefit Statement compared to the previous statement shall be clearly indicated.
6. In addition to the PEPP Benefit Statement, the PEPP saver shall be informed promptly throughout the term of the contract of any change concerning the following information:
(a)
the contract terms including general and special policy conditions;
(b)
the name of the PEPP provider, its legal form or the address of its head office and, where appropriate, of the branch which concluded the contract;
(c)
information on how the investment policy takes into account ESG factors.
PEPP Benefit Statement
1. The PEPP Benefit Statement shall include, at least, the following key information for PEPP savers:
(a)
personal details of the PEPP saver and the earliest date on which the decumulation phase may start for any sub-account;
(b)
the name and contact address of the PEPP provider and an identification of the PEPP contract;
(c)
the Member State in which the PEPP provider is authorised or registered and the names of the competent authorities;
(d)
information on pension benefit projections based on the date referred to in point (a), and a disclaimer that those projections may differ from the final value of the PEPP benefits received. If the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP contract;
(e)
information on the contributions paid by the PEPP saver or any third party into the PEPP account over the previous 12 months;
(f)
a breakdown of all costs incurred, directly and indirectly, by the PEPP saver over the previous 12 months, indicating the costs of administration, the costs of safekeeping of assets, the costs related to portfolio transactions and other costs, as well as an estimation of the impact of the costs on the final PEPP benefits; such costs should be expressed both in monetary terms and as a percentage of contributions over the previous 12 months;
(g)
where applicable, the nature and the mechanism of the guarantee or risk mitigation techniques referred to in Article 46;
(h)
where applicable, the number and value of units corresponding to the PEPP saver’s contributions over the previous 12 months;
(i)
the total amount in the PEPP account of the PEPP saver on the date of the statement referred to in Article 35;
(j)
information on the past performance of the PEPP saver’s investment option covering performance of a minimum of 10 years or, in cases where the PEPP has been provided for less than 10 years, covering all the years for which the PEPP has been provided. Information on past performance shall be accompanied by the statement ‘past performance is not indicative of future performance’;
(k)
for PEPP accounts with more than one sub-account, information in the PEPP Benefit Statement shall be broken down for all existing sub-accounts;
(l)
summary information on the investment policy relating to ESG factors.
2. EIOPA shall, in consultation with the European Central Bank and competent authorities, develop draft regulatory technical standards specifying the rules to determine the assumptions on pension benefit projections referred to in point (d) of paragraph 1 of this Article and in Article 34(2). Those rules shall be applied by PEPP providers to determine, where relevant, the annual rate of nominal investment returns, the annual rate of inflation and the trend of future wages.
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Article 10 to 14 of Regulation (EU) No 1094/2010.
Supplementary information
1. The PEPP Benefit Statement shall specify where and how to obtain supplementary information including:
(a)
further practical information about the PEPP saver’s rights and options, including with regard to investments, the decumulation phase, the switching service and the portability service;
(b)
the annual accounts and annual reports of the PEPP provider that are publicly available;
(c)
a written statement of the PEPP provider’s investment-policy principles, containing at least information on the investment risk measurement methods, the risk-management processes implemented and the strategic asset allocation with respect to the nature and duration of PEPP liabilities, as well as how the investment policy takes ESG factors into account;
(d)
where applicable, information about the assumptions used for amounts expressed in annuities, in particular with respect to the annuity rate, the type of PEPP provider and the duration of the annuity;
(e)
the level of PEPP benefits, in the case of redemption before the date referred to in point (a) of Article 36(1).
2. In order to ensure consistent application of Article 36 and of this Article, EIOPA shall, after consulting the other ESAs and after conducting consumer testing and industry testing, develop draft regulatory technical standards specifying the details of the presentation of the information referred to in Article 36 and in this Article. In relation to the presentation of the information on past performance as referred to in point (j) of Article 36(1), the differences between the investment options shall be taken into account, in particular if the PEPP saver bears investment risk or if the investment option is age-dependent or includes duration matching.
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is conferred on the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
3. Without prejudice to Article 34(2) and point (d) of Article 36(1), in order to allow for comparison with national products, Member States may require PEPP providers to provide PEPP savers with additional pension benefit projections where the rules to determine the assumptions are set by the respective Member States.
Information to be given to PEPP savers during the pre-retirement phase and to PEPP beneficiaries during the decumulation phase
1. In addition to the PEPP Benefit Statement, PEPP providers shall provide each PEPP saver two months before the dates referred to in points (a) and (b) of Article 59(1) or at the request of the PEPP saver, with information about the upcoming start of the decumulation phase, the possible forms of out-payments and the possibility for the PEPP saver to modify the form of out-payments in accordance with Article 59(1).
2. During the decumulation phase, PEPP providers shall provide annually PEPP beneficiaries with information about the PEPP benefits due and the corresponding form of out-payments.
Where the PEPP saver continues to make contributions or to bear investment risk during the decumulation phase, the PEPP provider shall continue providing the PEPP Benefit Statement containing the relevant information.
Information to be given on request to PEPP savers and PEPP beneficiaries
At the request of a PEPP saver or of a PEPP beneficiary or of their representatives, the PEPP provider shall provide the supplementary information referred to in Article 37(1) and supplementary information about the assumptions used to generate the projections referred to in point (d) of Article 36(1).
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
