The Pan-European Personal Pension Product (PEPP) in Portugal
Act No.1/2025, published on the 6th of January 2025, complies with Regulation (EU) 2019/1238, which establishes the Pan-European Personal Pension Product (PEPP), a pension savings scheme available across the European Union. The main goal of this product is to offer European citizens a complementary alternative to national pension systems, promoting portability, transparency and consumer protection.
The main points of the regulation, which characterise this investment product, include:
Strengthening the third pillar of pensions, based on personal and complementary investment products driven by tax benefits, greater transparency and innovative products, such as PEPP, is essential to ensure greater financial security in retirement, reducing dependence on public systems which increasingly present uncertain sustainability indicators. Therefore, this regulation aims to promote pension savings, increase competition in the sector and offer greater flexibility to European citizens.
The regulation also defines the regulatory authorities of the PEPP in Portugal:
These provisions aim to ensure an effective and harmonious implementation of the European regulations in the Portuguese financial sector, reinforcing consumer protection and market stability. It has never been more urgent to offer effective and innovative investment and saving solutions, capable of building the foundations of a financially secure and promising future for citizens.
A solution that evolves in line with new market trends
Although not the only one, comprehensive support for the definition, commercialisation and operation of PEPP products is one of the latest developments in Cleva’s solution for pension funds in its continuous alignment with market needs.
Thus, we highlight some of the latest developments which reinforce this commitment:
We also highlight the Pensioners Portal module which allows the integration with online restricted areas and with multiple external channels, such as help desks and companies. It also allows access to a web services catalogue, which enable integration with other systems and present an extensive functional coverage, from data consultation to underwriting and refund transaction execution.
In line with the latest demands from the pension fund sector, Cleva prepared its Participation Units module to support the management of PEPP products. This management allows to encompass different regions in the European Union by compartmentalising movements by contracts, transfers and respective taxation.
The Pan-European Personal Pension Product (PEPP) in Portugal Act No.1/2025, published on the 6th of January 2025, complies with Regulation (EU) 2019/1238, which establishes the Pan-European Personal Pension Product (PEPP), a pension savings scheme available across the European Union. The main goal of this product is to offer European citizens a complementary alternative to national pension systems, promoting portability, transparency and consumer protection.
In a time in which adaptability and efficiency are crucial for the success of the companies, the insurance industry faces its own challenge with the need to update its core systems to remain competitive.
In a rapidly changing world, technology is an unavoidable means in any sector of activity, but it is never an end. When technology does not evolve to keep up with the change in the business context, particularly in the insurance industry, time may dictate that it becomes an end, due to the criticality that operational risks, not addressed at the right time, may represent.
Cleva is committed to the development of core solutions that boost the digital transformation of the insurance industry through a comprehensive and integrated platform with a complete functional range from managing policies to risk assessment and customer service.