Pension reform threat to funds

All remaining defined benefit pension schemes in the United Kingdom would be forced to close and many businesses pushed into insolvency if European proposals to strengthen company retirement plans are put in place, influential employers’ and labour groups in the UK have warned.

In a letter sent to the European Commission in February 2012, the heads of the National Association of Pension Funds, the Confederation of British industry (CBI) and the Trades Union Congress (TUC) warned that the plans would have disastrous consequences for companies and employees.

The response was following the review by the European Insurance and Occupational Pensions Authority (EIOPA) of the Institutions for Occupational Retirement Provision (IORP) Directive.

ESO: Background information: European Insurance and Occupational Pensions Authority (EIOPA) http://www.europeansources.info/record/european-insurance-and-occupational-pensions-authority-eiopa/

Website: National Association of Pension Funds (NAPF) http://www.napf.co.uk/

NAPF: Press Release, 4.1.12: New EU Pensions law threatens UK economy and jobs http://www.napf.co.uk/PressCentre/Press_releases/0168_New_EU_Pensions_law_threaten_UK_economy_and_jobs.aspx

NAPF: Policy and Research: Documents - by title: EIOPA review of the IORP Directive: An NAPF response, January 2012 http://www.napf.co.uk/PolicyandResearch/DocumentLibrary/0211_EIOPA_CP11_006_NAPF_response_03Jan11.aspx

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