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.
Some of the UK's biggest pension schemes will be forced to report on climate risk in line with recommendations from the Taskforce for Climate-related Financial Disclosures (TCFD).
TPT Retirement Solutions has launched a pension scheme for the education sector which offers schools both defined contribution (DC) and defined benefit (DB) pension provision.
The People's Pension has revealed plans to overhaul its charging structure, cutting fees and returning profits to members with an aim to help people save more money for retirement.
Data consultancy ITM has appointed Akash Rooprai as head of client management to lead its de-risking business.