The National Association of Pension Funds (NAPF) is warning that the EU’s assessment of Solvency II-type rules for pension funds are “seriously flawed”.
According to NAPF, they don’t provide an adequate test of regulations that could damage UK pensions and businesses for decades.
In particular, the Association believes that the Holistic Balance Sheet (HSB) doesn’t take adequate account of the complex structures of many large, multinational companies and their pension schemes.
NAPF added that the HBS fails to provide an accurate valuation of an employer’s support of a pension, particularly in complex groups and in schemes with a degree of government support.
The comments come in a response to the European Insurance and Occupational Pensions Authority’s Quantitative Impact Study, which it testing the proposals of the European Commission.
NAPF has also criticised the short eight-week timeframe given for providing feedback on the Solvency II-based regulation – many NAPF members said they didn’t have time to respond.
Joanne Segars, NAPF chief executive, comments: “This study was a good opportunity to test the EU’s proposals, but it has completely failed to do so.”
Category: Insurance News