EEF voices fears over proposed changes to pensions directive

Proposed
amendments to the current text of an EU Directive on Pensions are posing an
“additional and significant” threat to UK occupational pension schemes
according to the Engineering Employers’ Federation (EEF).

The
changes are supported by several MEPs on the European Parliament’s Economics
and Monetary Affairs Committee and, according to the EEF, could adversely
affect pension arrangements in the UK and other EU member states.

David
Yeandle, deputy director of employment policy at the EEF, said the proposed
changes to the draft Directive on ‘Institutions for Occupational Retirement
Provision’ could:

Increase
the costs of operating pension schemes for their sponsoring organisations

Reduce
flexibility for both employers and employees

Make
it less likely that employers, especially SMEs, will provide occupational
pension schemes for their staff

www.eef.org.uk

By Ross Wigham

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