The Pensions and Lifetime Savings Association has responded today (Tuesday) to the European Insurance and Occupational Pensions Authority’s (EIOPA) results of the first EU stress test for occupational pensions.
Joanne Segars, Chief Executive of the Pensions and Lifetime Savings Association, commented:
“It is very disappointing to see EIOPA still pressing ahead with its Holistic Balance Sheet concept, now renamed the 'Common Methodology' for the purposes of these stress tests. EIOPA admits that the Holistic Balance Sheet is still no more than a work in progress, so there can be no justification for using it as the basis of this exercise.
“Pension schemes remain robust, long-term institutions, able to respond to economic shocks through recovery plans agreed by trustees and approved by the Pensions Regulator, and it is pleasing to see EIOPA's report acknowledges this fact.
“The report reveals − once again − the damage that the Holistic Balance Sheet would do to pension provision by inflating deficits to far higher levels than under current methods of measurement. The result would surely be many more scheme closures.
“However, we understand that EIOPA has a role in running health checks on pension schemes across the EU and we are pleased that so many UK pension schemes supplied data.”
For more information, read EIOPA’s press release on the results of the first EU stress test for occupational pensions.
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]