Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2012
08

EU pension legislation review 'is being rushed through'

Open-access content Wednesday 1st August 2012 — updated 5.13pm, Wednesday 29th April 2020

The revision of European Union pensions legislation that could lead to new capital requirement rules being placed on UK funds is being rushed through to stick to a political timetable, the National Association of Pension Funds claimed yesterday.

2

Responding to a consultation launched by European regulators that will feed into the revision of the Institutions for Occupational Retirement Provision Directive, the NAPF said it was 'astonishing' that it had only been given six weeks to address 'very complex and technical issues'.

The European Insurance and Occupational Pensions Authority consultation, which was launched in June, sought views on how the regulator should measure the impact of the revision on pension funds.

Employers, workers and pension funds have already raised concerns that the revision of the directive could affect pension provision if the capital requirements involved are too similar to those being introduced for the insurance industry under Solvency II.

NAPF policy director Darren Philp reiterated this concern yesterday. 'Solvency II-type proposals could have extremely damaging consequences for our pensions and the wider economy. They would hit businesses running final salary pensions, and would also take jobs and investment out of the UK's faltering economy.
'We are concerned that the quality of policy-making is being driven by the political timetable, rather than by a commitment to getting it right. These are long-term issues and the EC should take the time to address them properly, rather than rushing them through.'

Mr Philp raised particular concerns over the 'holistic balance sheet' which EIOPA has advocated as provide a single Europe-wide risk based supervisory regime for pension schemes.

'Crucially, the consultation does not answer the key question of how the holistic balance sheet will be used in practice. Will it form a new funding regime, or will it simply be a disclosure item for trustees?' he asked.
 'The consultation also throws up completely new concepts, such as the question of how to value pension protection schemes and employer support for a pension scheme. These issues deserve their own round of QIS.'
In its response to the consultation, Insurance Europe welcomed EIOPA's plans to take Solvency II as the benchmark for regulation pensions, which it said would also take into account the specific characteristics of pension funds such as employer covenants.

Michaela Koller, director general of the group representing insurers across Europe, said: '

'It is important to thoroughly test the applicability of the Solvency II principles to IORPs, taking appropriate account of any economically significant differences between different providers. We therefore consider the quantitative impact study to be a necessary step in the process of reviewing the IORP Directive.'

In particular, Insurance Europe highlighted the importance of addressing how long-term guarantee products are treated under the revised legislation. 'Appropriate solutions have to be found for these fundamental issues and these solutions should then be applied consistently in the Solvency II Directive and the IORP Directive,' said Ms Koller.

This article appeared in our August 2012 issue of The Actuary.
Click here to view this issue
Filed in
08
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Manager - Employee Benefits

£2958.18 - £3549.82 per month
Reference
145973

Manager - Employee Benefits

£2958.18 - £3549.82 per month
Reference
145972

Portfolio Management/Business Planning Actuary

London (Central)
£100000 - £125000 per annum
Reference
145971
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ