Alex Waite comments on EIOPA's advice on Solvency II for pensions
16 February 2012

Alex Waite, a partner at Lane Clark & Peacock, said the aim of a holistic balance sheet was a 'noble and ambitious objective', but was 'clearly not a cost effective mechanism for dealing with the vast number of widely differing occupational pension schemes across Europe.'

Mr Waite echoed concerns raised by unions, business leaders and pension funds earlier this week that the plans would involve the complete closure of defined benefit schemes in favour of defined contribution schemes.

He added: 'With yet more retrospective legislation being piled on employers, many will close down their occupational pension schemes, and pass the risks to large insurance companies.  A number of employers have already taken advantage of the current favourable insurance pricing, before excess demand pushes up the price of buying insurance.'

The Actuary (Web)
16 February 2012