EU/UK - The EU Parliament has been urged to ratify a new directive which would enable large companies to run pan-European pension schemes.
A change could render a severe knock to the UK’s already ailing pension system.
The European parliament is being pushed to block a German amendment to a pensions directive that will restrict schemes’ equity investments.
Germany wants the EU directive Institutions for Occupational Retirement Provision to replicate German rules that impose a 30% limit on the amount of equities a scheme can hold. In an unprecedented move, the National Association of Pension Funds (NAPF), the Confederation of British Industry (CBI) and the Engineering Employers Federation (EEF) have written to the UK’s 87 MEPs, pressing for a positive vote on the directive. The letter reads: “The Directive [sic] represents a hard-won compromise between differing viewpoints but there is now a danger that amendments may be proposed which could upset the delicate balance that has been achieved.
“If any changes are introduced at Second Reading to make the Directive more prescriptive and restrictive, UK interests are likely to be better served without it.
“It is therefore vitally important that the current text of this Directive passes unchanged. An amended Directive could harm UK pension schemes at a time when many of them are already under threat.” UK MEPs are urged to vote for the directive as it stands.
The Directive is due to be discussed by the European and Monetary Affairs Committee of the EU Parliament today.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).