EUPressure is mounting on the European Commission to abandon “reckless” Solvency II-style proposals for pensions which could cost UK defined benefit schemes £450bn. The Commission is considering raising the level of capital DB scheme sponsors are required to hold in reserve in an attempt to protect members’ savings.

click hereThe European Insurance and Occupational Pension Authority, an EU regulator, published preliminary findings outlining the impact the proposals could have. Eiopa estimates the changes will load an extra £450bn in additional funding costs onto UK DB schemes.

Pensions minister Steve Webb says: “The EU’s latest figures show the extremely high cost its plans would place on UK defined benefit pension schemes. “In fact, its estimate of a baseline £450bn cost is in line with the worst case scenario contained in figures The Pensions Regulator produced for the UK Government last year.

  MoneyMarketing / EIOPA Studies