Pensions - Articles - UK cost of EU pensions proposals


 LCP research has shown that the additional cash funding requirements imposed on UK companies could have been as much as half of GDP had the European Commission’s controversial IORP II directive come into force. The staggering figure of 46% of GDP sharply contrasts with the estimated cost to other European countries: for example, Germany and Ireland would both be hit by just 2% and Belgium by 1%.

 The European Pensions Regulator (EIOPA) published the final results of its Quantitative Impact Study (QIS) into the financial implications of imposing insurance style regulation on private sector funded pension schemes in July. By analysing the results of the QIS, LCP has identified that the UK would have been - by far - the most impacted country by the pension proposals.

 Jonathan Camfield, LCP partner, said: “Our research demonstrates that the impact of Europe’s pension proposals would have been gargantuan for the UK when compared to other countries. These proposals would be crippling for the UK economy.

 “Whilst we are pleased that the European Commission has put these proposals on hold we are concerned that the ongoing work by various European bodies and the statements being made from Brussels, suggest that the issue remains firmly on the agenda, and is not going to go away quickly.

 “Even if Europe does not require UK employers to recognise these additional costs at the moment, our research demonstrates the challenges faced by the UK private sector relative to its European counterparts. This begs the question whether the UK private sector can manage to pay off all its pension promises, whilst remaining competitive with other European countries over the coming decades.”
   

Back to Index


Similar News to this Story

Savers resoundingly back concept of Targeted Support
Consumers welcome Targeted Support’s potential to provide more relevant help with retirement income decisions, greater direction and the filtering out
DB pension transfer compensation stays low
Average DB transfer compensation remains low albeit compensation still due in many cases with each redress cases assessed on its own merits. CMCs shi
Comments on the second reading of the Pension Schemes Bill
Hymans Robertson and PensionBee comment on the second reading of the Pension Schemes Bill

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.