EU 'puts final nail in coffin' of British pensions

European Union pension rules could spell the end of final salary schemes in Britain, experts warned last night.

Hundreds of employers may be forced to abandon their schemes under planned Brussels regulations that critics say will push up the cost of administering funds by up to 90 per cent.

The National Association of Pension Funds warned the plans would be the ‘final nail in the coffin’ of final salary pensions.

European Commission proposals would force employers to pay in huge extra sums to reduce the risk of pension funds collapsing.

The plans are designed to protect workers from rogue and negligent employers. But experts warn they could have a devastating impact in the UK, which already has tough pension protection rules.

NAPF chief executive Joanne Segars, whose organisation’s members control pension assets of £950billion, said the proposals were ‘inappropriate’ for the heavily regulated British pensions system.

She warned that the potential rise in costs would force many employers to reconsider whether they could still afford to run so-called defined benefit schemes, which guarantee staff a pension worth a fixed proportion of their final salary on retirement.

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EU 'puts final nail in coffin' of British pensions

EU 'puts final nail in coffin' of British pensions

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