Post by Focus on Apr 10, 2013 18:50:17 GMT
MILLIONS of pensioners in the UK could have their retirement hopes 'highly damaged' by new European Union (EU) proposals, an expert has warned.
Millions of UK pensioners could have their retirement hopes hit by new EU proposals
Brussels want businesses to invest extra capital to protect themselves from risks, which could push the deficit for UK pensions funds to £450 billion.
The move to 'Solvency II' rules could put a huge burden on UK final salary schemes, according to The National Association of Pension Funds (NAPF).
Their chief executive, Joanne Segars, said: "The EU plans for UK pensions come with a clear and unpalatable price tag.
"Businesses trying to run final salary pensions could be faced with bigger pensions bills to plug an astonishing £450bn funding gap.
Minister for pensions Steve Webb described the proposals as 'reckless'
"This would have a highly damaging effect for the retirement prospects of millions of UK workers."
Figures from the Pension Protection Fund show the deficit stood at £236.6bn in March, a monthly increase of over £30bn.
The proposals, which currently applies to insurers in the EU, would force employers to make bigger contributions to schemes.
Steve Webb, the minister for pensions, described the EU proposals as 'reckless'.
The proposals from Brussels would force employers to make bigger contributions to schemes
The Liberal Democrat said: "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."
Well that's f**ked that then! - Fx
