EUROPE/UK - The European Commission has rejected UK media reports suggesting British workers could see pensions cut up to 20% under European rules that govern insurance company capital requirements.
According to reports by papers such as the Financial Times and the Daily Express, the European Union's proposed Solvency II rules set to be introduced in 2012 would force insurance companies to raise the level of capital they hold. As a result, insurers would likely pass on the added costs to pensioners.
Reports also suggested defined contribution pension schemes, where money is used to buy an annuity on retirement, would be the ones most affected.
Laitenberger said: "It is regrettable that in a time of financial crisis when the need for sound financial institutions has never been clearer, those measures put forward to address these needs are denigrated in this way."
He added: "The truth is that the pension pot of a defined contribution pension scheme holder will not change as a result of any rules - existing or proposed - from the European Commission."
The directors of collapsed construction giant Carillion were "contemptuous" of funding their defined benefit (DB) pension schemes, and "refused to give an inch", Frank Field has alleged.
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Frank Field is to warn Sir Philip Green not to sell his Arcadia business without ensuring defined benefit (DB) pensions are adequately protected, PP can confirm.
Some 79% of people would like to see stricter rules and checks to ensure pension pots are secure, according to a survey by the Pensions and Lifetime Savings Association (PLSA).