EUROPE/UK -Treasury civil servants want to end funded pensions but are trying to pass the blame on to the EU, a leading consultant claims.
Aon Consulting investment principal Chris Erwin said people in the pensions industry were already claiming that EU directives are potentially wrecking UK provision - when the Treasury was to blame.
Erwin - speaking at the London branch of the Pensions Management Institute's 'Benefits and Investments in Europe' meeting - said: “If the Treasury wishes to get rid of pensions funding, the ideal way is to be able to blame the Europeans.
“There are alternative views about the attitude of the Treasury. One informed view is that there is a minority of civil servants in the Treasury who are against funded occupational pensions. The majority just don’t know what to do.”
Erwin said he would be delighted if the Treasury was to prove him wrong. But so far there had been no indication that it would.
Erwin also said the Treasury should take more action, including potential legislation, to scrap FRS17 by placing control over the Accounting Standards Board.
He said: “The standard of FRS17 is being proposed by Professor Tweedie and his Accounting Standards Board, and is a substantial contradiction to the principles of prudent funding. It all helps promote confusion among pension schemes.”
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