The Pensions and Lifetime Savings Association has commended EIOPA’s decision not to continue its work on pensions solvency, as outlined in today’s report on the Quantitative Assessment of the Holistic Balance Sheet.
Joanne Segars, Chief Executive, Pensions and Lifetime Savings Association, said:
“EIOPA’s decision to end its work on solvency marks an important development in the long-running debate about a solvency-based funding regime for pensions. It is good news for pension schemes in the UK and Europe and a result our member pension schemes have campaigned tirelessly to reach.
“EIOPA now proposes a new reporting regime for pension funds, to run alongside existing regulation. The report acknowledges this would add €210 million (£167 million1) a year to costs. It would cause unnecessary confusion without delivering any benefit to scheme members.
“We believe there are more pressing priorities for EIOPA to pursue such as extending workplace pension saving to the 60% of EU citizens who have no access to it at present. Abandoning the solvency project is a good decision, but EIOPA should now go further and drop the Holistic Balance Sheet altogether.”
Latest figures2 for the Holistic Balance Sheet show that, if implemented in the UK, a solvency-based system would have increased the combined deficit of defined benefit (DB) pension schemes to €967 billion (£770 billion) – from €318 (£253 billion) under the current UK regime.
1 www.bbc.co.uk exchange rate as at 14 April 2016
2 Latest figures from EIOPA's report published today
NOTES TO EDITORS:
We’re the Pensions and Lifetime Savings Association, the national association with a ninety-year history of helping pension professionals run better pension schemes. With the support of over 1,300 pension schemes and over 400 supporting businesses, we are the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.
Lucy Grubb, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073023, E: [email protected]
Eleanor Carric, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]