EU pension plans ‘could see UK deficit soar’
Pensions minister Steve Webb has warned that EU pension plans could see UK pension fund deficits soar.
European proposals would force employers to make bigger contributions to company pensions, potentially seeing UK pension fund deficits increase to at least £450 billion, according to the National Association of Pensions Funds (NAPF). [EXPAND Read more]
The European Commission has proposed the introduction of Solvency II type rules to protect the savings of those in a defined benefit schemes. These rules would increase the funding levels needed for pension schemes.
Mr Webb commented: “The EU’s latest figures show the extremely high cost its plans would place on UK defined benefit pension schemes.
“This confirms that any such new rules would harm businesses’ ability to invest, grow and create jobs, and many more schemes could be forced to close. I continue to urge the Commission to abandon these reckless plans.”
According to the politician, the EU’s estimate of a £450 billion deficit was in line with the worst case scenario dreamt up by the Pensions Regulator.
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