EU green paper debate welcome but commission must tread carefully | Pensions and Lifetime Savings Association

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EU green paper debate welcome but commission must tread carefully

07 July 2010

The NAPF welcomed the launch of the EU Green Paper on pensions today, but warned that unnecessary rules could damage UK pensions.

Joanne Segars, NAPF Chief Executive, said:

“Europe is getting older and retirement ages will have to migrate upwards. The recession has put even more pressure on pensions, so a high-level EU debate about retirement is useful and welcome.

“But Europe has a patchwork of very different pension arrangements and a onesize-fits-all approach will not work. The UK already has a sound regulatory regime, supported by The Pensions Regulator, so the EU should think carefully before proposing new regulations.

“The EU’s suggestion of applying the funding model used for the insurance industry to pensions would be inappropriate and could cause serious problems. And unlike insurance companies, UK pension schemes have access to the ongoing support of the employer and, if that fails, the Pension Protection Fund.”

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