LONDON, UK — Hewitt Associates, a global human resources consulting and outsourcing company, has welcomed the consultation launched by the European Commission through its Green Paper on pensions, saying that this long-awaited initiative is a positive step that may help to reshape EU activity in one of the most challenging areas for both European and national policy makers.

Leonardo Sforza, head of EU Affairs and Research at Hewitt Associates, said:

"This Green Paper and its background documents represent the most comprehensive review made by the Commission on pensions for over a decade. In terms of method, it shows the inter-connection of different policy areas and the importance of an ever closer co-operation among different departments - beyond administrative silos.

"On the substance of future policy direction, it can be instrumental in tackling unfulfilled business expectations on the simplification of cross-border pension arrangements. These gaps - some of which could be immediately addressed by improving the transparency, predictability and coherence of statutory requirements - continue to undermine the effectiveness and credibility of the European Single Market.

Leonardo Sforza continued:

"The deployment of a more business-friendly regulatory environment for pensions is vital for employees and pensioners and for the competitiveness of the European system. In that respect, the employer's perspective on the subject of costs and the affordability of pension promises merits much greater and thoughtful attention than is currently the case."

"The EU's margin for manoeuvre in the area of pensions and its capacity to act with speed and agility may be limited but it has had its successes.  The previous Green Paper, in1997, opened the way for some important achievements, notably the adoption of the pan-European IORP directive.  Hopefully, this time there will be more determination and support for at least improving the EU regulatory framework than emerged from the consultation 13 years ago."

The Green Paper is seeking views on a number of key areas:

• The adequacy and sustainability of Europe's different pension systems
• The achievement of a sustainable balance between time spent working and time in retirement (in particular, how member states can be encouraged to postpone retirement of their workers further)
• Removing obstacles to mobility (in particular how the IORP directive be improved, for instance it is noted that this currently does not apply to all occupational pension arrangements; and whether the EU should look again at issues of transferability of accrued pension rights and/or a pension right tracking scheme)
• Safer, more transparent pensions with better awareness (here the EU notes the increasing trend to DC arrangements and the differing aspects of regulation, requirements and minimum communication standards that these pension arrangements may need, as well as the solvency issues of existing DB plans coupled with the risks of insolvency of the employer). 
• Finally, the paper considers how statistics on EU pensions and the governance of pension policy at an EU level could be improved.

Leonardo Sforza continued:

"A 'Green Paper' is generally a good opportunity for practising democracy within the EU decision-making process. In particular, it offers all stakeholders - beyond just EU bodies and institutional representatives - an opportunity to share their views on the issues at stake as well as suggesting possible options for action based on their direct experience. In the context of pensions, such an approach is even more important before adopting new decisions or legislative proposals given the long lasting impact they may have on people, organisations and individual Member States' policy responsibilities in the area of retirement provision.

"Quite rightly, stakeholders have been given a reasonable period of time for tabling their respective positions and reactions.  But the success of this Green Paper will be measured by the quality and scope of the debate that it generates – and ultimately, that is a shared responsibility between the EU institutions and all interested parties."

About Hewitt Associates 
Hewitt Associates (NYSE: HEW) provides leading organisations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of exceptional client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visitwww.hewitt.com.