This is an exciting moment in history—after almost two decades of institutional debate and new legislative developments, the European Economic Area (EEA) is a step closer to the establishment of a pan-European legal vehicle for occupational pensions across its member states.

As both the IORP—Pension fund Directive (2003/41/EC), and recent rulings of the European Court of Justice on the taxation of pension contributions and benefits come into force throughout the EEA, corporate sponsors can choose the most appropriate and cost-effective location for the pension fund of their employees, irrespective of the country of employment.

This freedom of choice is also open to both the service providers and the investment policy of the fund, making it possible to operate cross-border pension arrangements and create pan-European pension funds.

There are a range of factors and conditions that help to determine the best location for a pension fund and a number of countries are currently marketing themselves as the best ‘base’ location for a cross-border arrangement. We will be exploring all the possible locations for these plans, drawing on our extensive experience in best practice to help our clients select the best location for them.