MFSA consults on rules related to pension rights

On 30th April 2014, Directive 2014/50/EU of the European Parliament and of the Council of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights, (the “EU Mobility Directive”) was published in the Official Journal of the European Union. The said Directive entered into force on the 21st May 2014.

The EU Mobility Directive lays down rules aimed at facilitating the exercise of the right of workers to freedom of movement between Member States by reducing the obstacles created by certain rules concerning supplementary pension schemes linked to an employment relationship. Member States are required to bring into force the necessary provisions to comply with the EU Mobility Directive by the 21st May 2018. 1.2 Article 2 of the EU Mobility Directive lists the scenarios to which the provisions of the said Directive are not applicable.

Moreover, in terms of paragraph 4 of the said article, the EU Mobility Directive applies only to periods of employment falling after the 21st May 2018. 1.3 Occupational Retirement Schemes established on a voluntary basis which are duly licensed under the Retirement Pensions Act (Cap. 514) to provide retirement benefits, as well as Retirement Scheme Administrators administering such Schemes, fall within the scope of the EU Mobility Directive.

Therefore, since Occupational Retirement Schemes and Retirement Scheme Administrators will be required to take into account and operate in line with the minimum requirements laid down in the said Directive, the MFSA proposes to include and reflect such minimum requirements in a new Appendix in Part C of the Pension Rules for Occupational Retirement Schemes. The said Appendix is being issued for Consultation together with this same Consultation document.

Any comments and feedback in relation to the attached draft Appendix is to be addressed to the Insurance and Pensions Supervision Unit and submitted in writing on ipsu@mfsa.com.mt by not later than Friday 11th May 2018. The consultation document can be downloaded on https://goo.gl/wFRvkx

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