The Dutch government has argued that a proposed European framework for personal pension products would be unnecessary.

Responding to the European Commission’s plans to draw up rules for personal pension products – announced at EIOPA’s annual conference in Frankfurt last week – the Dutch government said the existing rules for insurers, banks and asset managers were sufficient.

It argued that Brussels should instead focus its attention on boosting second-pillar arrangements in countries where such systems are under-developed.

It also said it doubted Europeans would increase pensions savings under the Commission’s proposed framework.

“If people are not saving enough, it is most likely due to the specific circumstances of EU member states,” it said.

The Dutch government said its local second-pillar pensions market was working properly and pointed out that it was also open to foreign providers.

The European Commission’s proposal is linked with a consultation first mooted by European supervisor EIOPA about a pan-European personal pensions product (PEPP) last year.

At the time, the Dutch government said it failed to see any added value in such a product.

In the Commission’s opinion, personal pension products (PPPs) could help to secure adequate replacement ratios as an addition to state and worker pensions.

It argues that the single market could offer more choice of products and providers, and that it would allow workers to transfer their personal pension assets easily if they moved to another country.

PPPs would also be an important building block of a Capital Markets Union, it said.

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