The National Association of Pension Funds (NAPF) commented on the report published by the CBI about the potential economic impact of EC plans for Solvency II-type rules for pensions.
Joanne Segars, NAPF Chief Executive, said:
“This report highlights the disastrous impact that the changes would have on UK pensions, businesses and the wider economy. We have been concerned about these plans for a long time, and are alarmed they are still on the table.
“These plans would kick our economy when it is down, and the damage to jobs, growth and living standards would be felt for decades. It is incredible that Brussels wants to strip the business world of £350bn of potential investment when there are fears
of a triple dip recession.
“Businesses running final salary pensions would be hit with needless extra costs, and would be forced to divert cash away from investment and growth. Many would opt to close their final salary pension schemes altogether, so millions of workers would lose out.
“Europe is pushing for a dangerous solution when there is no problem in the first place. The UK has a very strong system of pension regulation, and there is no need for these ill-conceived rules.
“The EC urgently needs to rethink its approach and shelve these proposals.”