BR-AG | Senior Business Analyst, Practice Lead
Institutions for Occupational Retirement Provision (IORPs) in the European Union are subject to regular supervisory reporting. The technical requirements with which pension funds need to comply are defined by the European Insurance and Occupational Pensions Authority (EIOPA). To communicate the requirements for existing pension funds and the ones entering the market, EIOPA consistently updates the Pension Funds regulatory reporting taxonomy.
The latest revision in the Pension Funds 2.9.0 release aligns the model with Solvency II reporting requirements for insurance companies in Europe and introduces elements specific to IORPs. Since its publication, companies have had the opportunity to familiarize themselves with and test the 2.9.0 release. As a result, the Pension Funds 2.9.0 Hotfix is scheduled for release on July, 2024, to address concerns and enhance the model based on feedback received. The new taxonomy will be applicable from Q1 2025.
In the lead-up to the final publication, it’s time for pension funds to review their reporting processes and the taxonomy itself to ensure compliance. Reporting is done in XBRL (Extensible Business Reporting Language), which presents a technical challenge for those not regularly using this data exchange format. Together with our reporting and XBRL experts at BR-AG, we provide you with a few key facts about the latest revision.
UPDATE (22.07.2024): Pensions Funds Data Point Model and Taxonomy 2.9.0 Hotfix is officially published on July 16, 2024, on the EIOPA website. This pension funds DPM and XBRL taxonomy package release 2.9.0 Hotfix is provided to be used from the January 1, 2025 reference date until a new version is announced in line with the Governance of Taxonomy Releases.
The IORP II Directive ((EU) 2016/2341) forms the backbone of the legal framework for supervisory reporting, reflecting the essential role of IORPs in the economy. Therefore, there are a number of review areas that are further meant to provide for proportionality treatment of conflict of interest, effective use of data, and standardized risk assessment. Â
In addition to financial reporting and routine updates, IORP pension funds need also to prepare for sustainability and operational resilience reporting requirements. Similarly to other financial institutions in Europe, these reports will need to be submitted in XBRL format.
At BR-AG, we continuously support pension funds in meeting their reporting requirements, including the last-mile XBRL report creation and quality assurance.
ATOME Particles is our reporting solution specifically designed to help insurers and pension funds comply with their reporting obligations. It is specifically tailored to meet the unique needs and requirements arising from the industry’s reporting obligations established by EIOPA.
The reporting module for Pension Funds builds on the success of the Solvency II reporting module of the ATOME Platform, which has earned the trust of our clients from both Regulators and the Regulated.
In 2022 EIOPA started to use dedicated ATOME technology to support the taxonomy developments and manage the regulatory reporting requirements for the insurance and pension funds sector in the EU.
Currently, Pension Funds (IORPs) continue to use the 2.7.1 release until Q4 2024 included (2.9.0 will be applicable from Q1 2025).
During the regular annual revisions of the EIOPA models, the Pension Funds 2.9.0 release was published on July 15, 2023. This 2.9.0 release had three main goals: addressing known issues, aligning the model with Solvency II reporting, and introducing new elements in certain areas, such as a new cost category.
There was also a structural change to the model due to a new approach to generating XBRL taxonomy through a metadata management platform. According to EIOPA communication, Excel files are no longer treated as an initial input in this process but are now one of the outputs, alongside the database and XBRL taxonomy.
Although the DPM metamodel remains unchanged, the organization of the output Excel files has been modified and improved. These changes include a new layout and a shift from presenting annotated metrics to a Moderately Dimensional (MD) approach.
The goal was to ensure the model is presented consistently in both MS Excel and XBRL Taxonomy, with the latter being entirely MD-oriented. This move is expected to enhance clarity and help filers familiarize themselves more quickly with the revised model. Additionally, it is important to emphasize that the new approach is considered less error-prone compared to the previous manual process.
Pension Funds 2.9.0 release introduced a few new tables to the model, namely:
- PF.05.03.24.02 – Expenses – EIOPA opinion approach:
created after the PF.05.03.24 table split, to allow the entities to report expenses according to national accounting principles, EIOPA opinion approach, or both, - PF.06.02.25.01/02 – List of assets:
which forms a new module for quarterly reporting for individuals (.25) and was created to exclude PEPP reporting from quarterly submissions (as it is expected to be provided annually), - PFE.06.02.31.01/02 – List of assets [Pension funds with ECB add-ons]:
adding new module for quarterly reporting of the template for EBC add-on reporting for individuals (.31) excluding PEPP reporting (to align with pure EIOPA part), - PFE.29.05.30.01/02 (Changes in technical provisions) and PF.29.06.24.01 (Cash flows):
being completely new templates.
Get the full report about changes between taxonomy versions 2.9.0 and 2.7.1 for Pension Funds reporting: