March update: EIOPA adds PEPP to taxonomies
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 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.
Reporting requirements for PEPP and PEPP KID
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 28th February 2022, EIOPA published its newest taxonomy update, including PEPP prudential reporting requirements and those related to PEPP KID reporting.
The updated DPMs and taxonomies contain:
- PEPP Data Point Models and XBRL Taxonomies 2.7.0
- PWD Insurance Data Point Model and Taxonomy 2.7.0, used for Solvency II reporting
- PWD Data Point Model and Taxonomy 2.7.0, used for reporting on pension funds.
Filers should also closely follow future developments, such as the 2.8.0 release that will likely take place in the summer, containing final templates and instructions. Further down the line, in 2023, it is expected that EIOPA will publish a release containing validations and modelling.
PEPP KID is available in our regulatory reporting tool for filers.