Pensions minister Steve Webb has rallied against EU Commission proposals to establish a “one size fits all” regulatory system across the European Union.
The Green Paper, unveiled earlier this year, asks if a new solvency regime similar to Solvency II in the insurance sector should be introduced for occupational pensions. The suggestion led to concern from lobby group the Confederation of British Industry about the strain increased capital requirements could place on UK businesses.
The paper also considers the merits of a pan-European regulatory system, suggesting that there is a “greater need for common rules” governing EU pension systems.
Issuing the DWP’s response to the consultation, Webb says: “It is important that we have a considered, wide ranging and open discussion about how to ensure pensions are secure and affordable, and encourage individuals to save for their retirement. However, we do not believe that there is a one size fits all model for pension systems across the EU.
“We fully support creating a robust and sustainable single market for insurance, but we do not believe the new capital solvency requirements should be applied to occupational pensions.”