EIOPA finalises cost of threat of Solvency II-type rules

The European pensions authority has today (Thurs) confirmed that Solvency II-type proposals would increase UK pension fund deficits by around £150bn to at least £450bn.

James Walsh, lead EU policy adviser, National Association of Pension Funds, said:

“This is final confirmation from the EU’s own advisers that Solvency II-type rules would inflict an unpalatable and unnecessary blow on UK pensions.

“It is a relief that Commissioner Barnier has postponed these plans for now, but this report underlines the need for them to be scrapped completely. They must not be revived by the next European Commission.

“Instead EU policymakers should take a step back and think about what the real priorities should be for pensions. Pension funds continue to support the EC’s vision of ‘safe, adequate and sustainable’ pensions. We need a clear view of the features that would enable pension schemes to deliver on those objectives.”

The European Insurance and Occupational Pensions Authority (EIOPA) today submitted to the European Commission (EC) the final results of its Quantitative Impact Study (QIS) on the proposed European Pensions Directive based on Solvency II-type rules. EIOPA also published a discussion paper on assessment of sponsor support.

Notes to editors:

The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]

Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]