The European Commission has decided not to introduce Solvency II-style capital requirements on pension funds, at least for now.
The decision follows warnings from the industry that the proposals threatened to increase deficits at some pension schemes by as much as 50% and put investments in infrastructure projects at risk.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The requirements have been postponed indefinitely and will not be considered again until the next commissioner takes office in November 2014.
The main beneficiaries of the Commission’s move will be employers operating defined-benefit pension plans. They would have been required to stump up more capital to plug gaping deficits, which have swollen in recent years as a result of higher life expectancies, weak economic growth and record-low government-bond yields.
The body’s 23 members cover the workplace pensions of about 80 million European citizens.
Michel Barnier, European commissioner in charge of drafting business regulation, said he would instead propose pension fund legislation in the autumn that would focus on governance, transparency and reporting requirements.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
