EU Says Will Not Introduce Detrimental Solvency Rules for Pensions
01 May 2012 (PLANSPONSOREurope.com) – The EU is waking up to the fact that solvency style rules for pensions are unworkable in their current form with EUHead of Insurance and Pensions Unit Karel Van Hulle disclosing that the EU will not introduce legislation that would be to the detriment of pension funds “in an individual member state”,Brandon Lewis, UK MP and Work and Pensions Select Committee Member, has told PLANSPONSOR Europe.
In an exclusive interview at
Parliament Lewis told
PLANSPONSOR Europe that Van Hulle’s evidence to the Select Committee last Monday would suggest that his view is that the Commission “could not, would not and should not” implement any one policy that would be detrimental to pension funds “any individual member state”.
In uncorrected evidence which is open for corrections up until 4th MayVan Hulle said: “The objective of this reform is not to damage the pensions industry. On the contrary, it is there to make sure that occupational pension funds can thrive, because the Commission believes—and this is what my colleague also said—that occupational pension funds are an essential feature of pension provision throughout the European Union. We need options, and therefore the objective can never be to have a system that is to the detriment of the pension funds.”
Seeking confirmation, Lewis said:
“In an individual member state.”
To which Van Hulle answered
: “In an individual member state.”
Lewis added: “They are very much consulting on whether this is workable and what would make the industry better. He [Van Hulle] was very, very evasive on specifics.
“He was really quite hard work to nail him down on not implementing anything that would be detrimental to the individual state.
“The more they look at it they must be finding that you can’t do this to the pensions industry. It just doesn’t work particularly in this country with the protections we have already got.”