The UK pensions industry continues to oppose the 'holistic balance sheet' (HBS) approach within the revised IORP Directive, and has called on stakeholders to make their voices heard in the consultation paper launched by the European Insurance and Occupational Pensions Authority (EIOPA) last week.
Joanne Segars, chief executive of NAPF, said: "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."
Aon Hewitt said EIOPA's quantitative impact study (QIS) consultation had "missed the point". Kevin Wesbroom, managing principal at the consultancy, said: "The assessment needed to examine the real issues for UK pension plans and the impact on their sponsors' ability to invest in their business for the future. Instead, we have a technical consultation on how a system could be made to work, but with no clear view of what that system will be used for.”
In light of these concerns, the UK Pensions Regulator (TPR) encouraged all stakeholders to respond fully to the consultation. It also stressed that, if the European Commission ultimately took EIOPA's advice on the use of an HBS approach, it would seek to ensure it was implemented in a "flexible" way.
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