The German Investment Funds Association BVI has warned that unresolved tax issues could prove a “massive obstacle” to the launch of a portable Pan-European Pension Product (Pepp).
Last week the European Commission published its long-awaited proposals for the creation of a Pepp, which would allow EU citizens to pay into the same pension plan even if they move country and give them greater mobility when they retire.
The Commission is urging EU member states to grant Pepps the same tax benefits as national pension products – but the BVI said this and other issues, such as the minimum policy term or the level of premiums paid into Pepps, needed to be resolved.
“Simpler parameters would make more sense in order to avoid a patchwork approach in Europe,” said BVI chief executive Thomas Richter. “It would be a shame if Pepps eventually failed because of this complexity.”
Despite the warning, the BVI said it backed the creation of a Pepp and described it as a “ground-breaking and important step to strengthen private retirement provisions throughout the EU”.
©2017 fund europe
