The European Insurance and Occupational Pensions Authority has set out principles for pension providers to follow in their communications with customers.
Following a report into how pension schemes and companies across the EU support members, Eiopa has opened a consultation on seven good practices.
They are: setting a coherent communication strategy; using online platforms; combining other HR-related information; providing calculators for projections; keeping members updated with tracking tools; assessing understanding; and using multiple channels.
Eiopa says: “Whilst information provision is not a panacea to address individuals’ bounded rationality in the context of investment decision-making, it is highly important for ongoing member engagement (after the initial choice – whether passive or active).
“Disengaged members give rise to potential choices of unsuitable investment strategies and/or investment options over time.”
However, providers are not bound by good practices and the principles are not subject to the ‘comply or explain’ regime.
The consultation closes on 22 March 2016.