02/01/2012 EuroInvestors fully supports the position of the GCAE, emphasizing the necessity of correct, understandable and not misleading information about pensions. “Communication with the members should also explain in simple and clear terms the principal risks implicit in the financial arrangements, how they are managed and the potential consequences of failure. Better communication regarding the purchasing power of the benefits is essential and should, in our opinion, be an important factor in disclosure.” Moreover, transparency in communication with all stakeholders should be encouraged, leading to better understanding of the complexities and risks in pension schemes. EuroInvestors agrees with EIOPA that a new KIID-like document should be introduced and extended with information on contribution arrangements, practical information and cross/references to other document. Last but not least, the opinion of GCAE is shared  stating that “the HBS should be made public and communicated to stakeholders and especially plan members (present employees , retired and reversion beneficiaries) so that the employees get a better understanding of the exact nature of the promise being made to them and asses better the financial aspects of the plan sponsor covenant”.

Position paper:
EFI answer to EIOPA consultation on CfA on the review of Directive 2003 41 EC1326295813.pdf