The National Association of Pension Funds (NAPF) commented on the Quantitative Impact Study (QIS) consultation launched by the European Insurance and Occupational Pensions Authority (EIOPA) today.
The consultation seeks views on how EIOPA should measure the impact of its Holistic Balance Sheet proposal, which is likely to form the centrepiece of a new EU Directive on pensions.
NAPF Chief Executive Joanne Segars said:
“This is a very important consultation. The results will help determine the future of pensions provision in the UK.
“We support the European Commission’s objective of achieving secure, sustainable and adequate pensions. However, we remain concerned that EIOPA’s proposals will undermine these principles. We are therefore very disappointed that the Holistic Balance Sheet is still on the table. These rules would damage final salary pensions in the UK and elsewhere across Europe. The NAPF has calculated these rules could cost UK pension funds at least an extra £300bn.
“Faced with extra funding demands, companies will either divert money away from business investment and job creation to pay for these pensions, or will simply decide to stop offering them.
“We will continue to make the case for the new EU Pensions Directive to focus on areas where it could make a positive difference, rather than undermining support for good pensions.”