A glance at PEPP – draft PEPP KID taxonomy published
Long story short: What is PEPP?
In legal terms, a Pan European Personal Pension Product (or shortly, PEPP) is a long-term, individual, non-occupational personal pension product, which can be subscribed to voluntarily by a “PEPP saver” for income upon retirement.
What does this mean? In short, PEPP is intended as an additional product for the long-term accumulation of savings for retirement.
I will offer PEPP. What should I know about PEPP?
- There are four types of PEPP, including the “basic PEPP”.
- The key features of PEPP are standardised, meaning that the PEPP regulation lays out several transparency requirements for PEPP. The overall goal of PEPP standardisation is to guarantee that PEPP products among various providers are easily comparable.
- Before buying a PEPP, the buyer should be given a Key Information Document (KID) laying out key information on the offered PEPP.
The KID lays out the main information on the PEPP and its long-term objectives, associated risks, and type of PEPP. KID is highly standardised to ensure that it is comparable to the offers of other PEPP providers. A separate PEPP KID shall be drawn up for the basic PEPP.
- PEPP savers should annually be provided with a standardised Pension Benefit Statement, allowing them to track the development of their PEPP product and make informed decisions on the product overall.
What does this mean for my reporting?
The PEPP KID (along with the PEPP Benefit Statement) are both highly standardised documents that provide consumers with relevant information to facilitate better decision-making and monitoring of PEPP performance.
On the 1st of June 2021, EIOPA published the first Public Working Draft of the PEPP KID taxonomy, which outlines the reporting requirements for the PEPP KID. The draft includes a structured representation of EIOPA’s Pan-European Personal Pension Product reporting requirements and XBRL reporting requirements.
The package will soon become available in our reporting tool, ATOME Particles.