EU Europe’s €1,870bn (£1,394bn, $2,738bn) occupational defined benefit pensions industry is protesting loudly about possible changes to capital adequacy requirements that could force a reduction in equity exposure in favour of bonds, or an increase in funding levels.

The apprehension being felt by pension fund managers concerns the possible application to their funds of forthcoming rules to deal with capital adequacy for the insurance industry (Solvency II). The debate is in the hands of the Committee of European Insurance and Occupational Pensions Supervisors , a body that advises the European Commission. Ceiops is assessing the different pension regimes, prior to reporting, probably before the end of March.

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