Compromise is reached over EU pensions directive

Employers
have expressed their relief about a compromise deal over the EU pensions
directive which could have threatened the way that UK pension funds are
administered.

The
new amendments, tabled by the European Parliament’s economic and monitory
affairs committee, mean that occupational pension scheme members will still be
able to draw lump sums on retirement.

The
deal was reached after lobbying by the Engineering Employers’ Federation and
the National Association of Pension Funds. They argued that removing the lump
sum option would put more strain on pensions.

However,
employer bodies said the directive could still be a threat, depending on how
the Government chooses to implement it.

www.eef.org.uk
www.napf.co.uk

By Ross Wigham

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