Periodic Reporting for period 2 - RESAVER Pension Fund (Support to RESAVER Pension Fund - Horizon Europe(Horizon Europe Work Programme 2021-2022))
Période du rapport: 2023-07-01 au 2024-12-31
RESAVER Pension Fund, standing for Retirement Savings Vehicle for European Research Institutions (hereinafter referred to as “RESAVER" or “the Fund”) is a special multi-country, multi-employer pension vehicle based in Belgium, subject to cross-border pension regulations according to the IORP Directive. The Fund accepts members from research organisations and higher education institutions. The overall aim corresponds to the strategic objectives of the European Union on the creation of the European Research Area to enhance the competitiveness of a knowledge-based Europe by removing the obstacles of researchers’ mobility in Europe.
Researchers are often reluctant to accept postings in a foreign country fearing from losing their pension contributions or even not being eligible for these during short-term contracts due to vesting periods. RESAVER enables mobile employees of its member institutions to remain affiliated to the same supplementary pension fund when moving between different countries within the European Economic Area (EEA) and at the end of their career, they will receive their second pillar pension from one pension fund. Not only mobile employees can benefit from RESAVER though: all staff is eligible for joining from organisations engaged in research activity.
Since the start of its operation in 2016, 12 employers joined the Fund from 6 countries (Belgium, Hungary, Austria, Italy, the Netherlands and Cyprus). The Fund is being implemented in France and Spain with the Czech Republic to follow.
In the first 6 years of its operation RESAVER focussed on obtaining regulatory approval and completing operational implementation for the aforementioned countries. This resulted in RESAVER being present in most host countries in the EU among other pan-European IORPs. A solid foundation has been built to onboard new organisations from these host countries and expand presence in the European Economic Area.
RESAVER was designed to serve not only as a large cross-border DC pension fund in Europe but one offering state-of-the art services with a governance structure of high standards and flexibility to its members and participants in terms of investment strategies and pay-out options. There are no operational issues, the governance structure is strong, home and host country regulations are adhered to and its service providers are industry leading companies.
Researchers are often reluctant to accept postings in a foreign country fearing from losing their pension contributions or even not being eligible for these during short-term contracts due to vesting periods. RESAVER enables mobile employees of its member institutions to remain affiliated to the same supplementary pension fund when moving between different countries within the European Economic Area (EEA) and at the end of their career, they will receive their second pillar pension from one pension fund. Not only mobile employees can benefit from RESAVER though: all staff is eligible for joining from organisations engaged in research activity.
Since the start of its operation in 2016, 12 employers joined the Fund from 6 countries (Belgium, Hungary, Austria, Italy, the Netherlands and Cyprus). The Fund is being implemented in France and Spain with the Czech Republic to follow.
In the first 6 years of its operation RESAVER focussed on obtaining regulatory approval and completing operational implementation for the aforementioned countries. This resulted in RESAVER being present in most host countries in the EU among other pan-European IORPs. A solid foundation has been built to onboard new organisations from these host countries and expand presence in the European Economic Area.
RESAVER was designed to serve not only as a large cross-border DC pension fund in Europe but one offering state-of-the art services with a governance structure of high standards and flexibility to its members and participants in terms of investment strategies and pay-out options. There are no operational issues, the governance structure is strong, home and host country regulations are adhered to and its service providers are industry leading companies.
The work carried out during the reported period aimed at:
• Ensuring that the service providers carry out their roles effectively and deliver a smoothly operating pension process.
• Financing the fees essential for the ongoing running of RESAVER.
• Ensuring that the Fund has the capacity to enrol new potential organisations.
• Maintaining a sustainable investment strategy that responds to ESG requirements.
The Board of Directors fulfilled its obligations and ensured compliance with applicable legislative framework.
• Held quarterly Board meetings.
• Monitored and assessed the service level of service providers.
• Reviewed and updated governance policies and Fund documents.
• Reviewed the annual report and accounts and annual reports of supervising bodies.
• Reappointed and newly appointed service providers.
• Monitored the impact of geopolitical events.
• Discussed with the asset manager about further ESG investment options.
The Daily Management Committee (“DMC”) fulfilled its expected role to manage daily operations of the Fund.
• Adhered to legislative requirements and changes.
• Paid operational and investment charges and investment premiums.
• Kept track of the cash management of the Fund.
• Fulfilled reporting requirements towards authorities, organisations and participants.
• Arranged publications.
• Followed up on the recommendations received from the Internal Auditor and the Compliance Officer.
The Member Service Centre (“MSC”) ensured the member and benefit administration services including collecting and investing contributions, maintaining the member portal, setting up new organisations in the benefit administration system and fulfilling reporting obligations.
Service providers carried out their roles effectively and provided the service in accordance with the Work Programme and applicable legislations.
To support interested organisations RESAVER:
• Participated in events/conferences and organised information sessions.
• Supported with decision making by drafting business cases.
• Supervised the submission of cross-border notification files.
• Drafted pension rules and plan documents.
• Monitored operational implementation.
In the reporting period RESAVER achieved the following:
• Plan administration operation runs smoothly.
• Benefit statements were issued to plan participants.
• A simplified glide paths was introduced for lifecycle investments.
• Obtained FSMA and local regulatory approval to open the French section.
• Obtained FSMA approval to open the Spanish section. Discussions are ongoing with the local regulator, DGS.
• Met the Czech National Bank to discuss the opening a Czech section.
• Year-end closing activity was completed for the years 2021 and 2022.
• RESAVER can now be engaged in promotional activity.
• RESAVER decided to make the first steps in its own governance structure with the aim to build up a self-sufficient organisation by:
o Selecting an in-house pension fund manager (PFM).
o Selecting a technical expert advisor.
o Developing growth strategy and selecting in-house personnel for its implementation.
• Research organisations were briefed at a meeting with ERICs and bilateral meetings with prospects in Austria, Italy, the Czech Republic and Greece.
• Attendance at EURAXESS events in France and Greece, ESOF conference in the Netherlands, event at CERTH – The Centre for Research & Technology, Hellas.
• Attendance at PensionsEurope Conference, CBBA conference, and MCAA conference .
• Business proposals for interested organisations.
• Country factsheets for the Czech Republic and Greece.
• Meetings with potential service providers to develop a PEPP solution.
• Ensuring that the service providers carry out their roles effectively and deliver a smoothly operating pension process.
• Financing the fees essential for the ongoing running of RESAVER.
• Ensuring that the Fund has the capacity to enrol new potential organisations.
• Maintaining a sustainable investment strategy that responds to ESG requirements.
The Board of Directors fulfilled its obligations and ensured compliance with applicable legislative framework.
• Held quarterly Board meetings.
• Monitored and assessed the service level of service providers.
• Reviewed and updated governance policies and Fund documents.
• Reviewed the annual report and accounts and annual reports of supervising bodies.
• Reappointed and newly appointed service providers.
• Monitored the impact of geopolitical events.
• Discussed with the asset manager about further ESG investment options.
The Daily Management Committee (“DMC”) fulfilled its expected role to manage daily operations of the Fund.
• Adhered to legislative requirements and changes.
• Paid operational and investment charges and investment premiums.
• Kept track of the cash management of the Fund.
• Fulfilled reporting requirements towards authorities, organisations and participants.
• Arranged publications.
• Followed up on the recommendations received from the Internal Auditor and the Compliance Officer.
The Member Service Centre (“MSC”) ensured the member and benefit administration services including collecting and investing contributions, maintaining the member portal, setting up new organisations in the benefit administration system and fulfilling reporting obligations.
Service providers carried out their roles effectively and provided the service in accordance with the Work Programme and applicable legislations.
To support interested organisations RESAVER:
• Participated in events/conferences and organised information sessions.
• Supported with decision making by drafting business cases.
• Supervised the submission of cross-border notification files.
• Drafted pension rules and plan documents.
• Monitored operational implementation.
In the reporting period RESAVER achieved the following:
• Plan administration operation runs smoothly.
• Benefit statements were issued to plan participants.
• A simplified glide paths was introduced for lifecycle investments.
• Obtained FSMA and local regulatory approval to open the French section.
• Obtained FSMA approval to open the Spanish section. Discussions are ongoing with the local regulator, DGS.
• Met the Czech National Bank to discuss the opening a Czech section.
• Year-end closing activity was completed for the years 2021 and 2022.
• RESAVER can now be engaged in promotional activity.
• RESAVER decided to make the first steps in its own governance structure with the aim to build up a self-sufficient organisation by:
o Selecting an in-house pension fund manager (PFM).
o Selecting a technical expert advisor.
o Developing growth strategy and selecting in-house personnel for its implementation.
• Research organisations were briefed at a meeting with ERICs and bilateral meetings with prospects in Austria, Italy, the Czech Republic and Greece.
• Attendance at EURAXESS events in France and Greece, ESOF conference in the Netherlands, event at CERTH – The Centre for Research & Technology, Hellas.
• Attendance at PensionsEurope Conference, CBBA conference, and MCAA conference .
• Business proposals for interested organisations.
• Country factsheets for the Czech Republic and Greece.
• Meetings with potential service providers to develop a PEPP solution.
RESAVER has managed to build a strong and robust foundation for significant growth in the future. It is expected that when one or more large institutions have become a member then more will follow from the same country. ERICs are an important target group for RESAVER due to their size and network, and having them on board would be a tipping point in terms of impact.
Some of the member institutions have branches in more than one country, which are authentic promoters of RESAVER. In case there are staff movements between the different branches, mobile employees can remain affiliated to the same pension vehicle.
Over time, once a sufficient number of countries and employers will join RESAVER, institutions will realise that membership in RESAVER can differentiate them among other employers and workforce will have a preference towards RESAVER members giving them a competitive advantage on the labour market.
The European Commission could consider for some research organisations a possibility to make the affiliation to RESAVER mandatory.
Some of the member institutions have branches in more than one country, which are authentic promoters of RESAVER. In case there are staff movements between the different branches, mobile employees can remain affiliated to the same pension vehicle.
Over time, once a sufficient number of countries and employers will join RESAVER, institutions will realise that membership in RESAVER can differentiate them among other employers and workforce will have a preference towards RESAVER members giving them a competitive advantage on the labour market.
The European Commission could consider for some research organisations a possibility to make the affiliation to RESAVER mandatory.