Monday, 30 April 2012

EU Pensions Proposals Worry the UK Pensioners


It is reported that the new funding rules recommend treating pension assets and liabilities similar to those of insurance companies. The recommendation has been proposed by the European Insurance and Occupational Pensions Authority, or Eiopa. With regards to this, the Europe’s pensions industry has flooded the Eiopa with 170 unfavourable replies.
There is a real concern that the proposed European Union capital rules for pension funds could impact on British jobs, businesses and savers. UK Pensioners could face a 20% drop in their income. This issue was raised by the Confederation of British Industry and the Trades Union Congress in a letter to the President of the EU commission.
The Financial Times quoted the UK’s National Association of Pension Funds, as saying that a Solvency II-style approach for pensions could force UK companies to bolster their schemes with a further £300bn, on top of the £1 trillion in assets already in the funds.
The head of labour-market and pensions policy at the Confederation of British Industry, Jim Bligh, said that businesses were “seriously concerned” with the latest recommendations of the EU regulator.