DB faces greater problems than Solvency II

The statement, made at a Department for Work and Pensions (DWP) Committee meeting last week, contradicts UK stakeholders, including the Confederation of British Industry (CBI), which claims Solvency II is the biggest current threat to UK DB pension schemes.

Members of the DWP Committee, chaired by Stephen Lloyd, MP for Eastbourne and Willingdon, argued the UK should be excluded from Solvency II because it would be so damaging.

Karel Van Hulle, head of insurance and pensions at the EC, would not say the UK would be left out of the policy, but said Solvency II would not be implemented in a way that would be damaging to the UK.

He stressed the importance of running impact assessments before making assumptions, and despite saying the original deadline for testing would have to be pushed back, he was unable to provide a timeframe within which the process could be sufficiently completed.

James Walsh, senior policy adviser at the National Association of Pension Funds, said the final details of the quantitative impact assessment are still “hazy”.