Pensions puzzle

Senior politicians in Brussels are calling for Solvency II to be extended to incorporate occupational pension schemes. But actuaries and other solvency experts say this would be a disaster for plan sponsors and members. John Ferry reports

Proposals to alter the regulatory framework for banks to avert future crises have been a focal point for the financial sector and media alike in recent months. But elsewhere, another regulatory issue is sparking similarly intense debate: whether a risk-based solvency regime should be applied to the European pensions industry.

Proponents of a specific regulatory framework akin to Basel II for banks or Solvency II for insurers argue it would make pensions commitments safer for beneficiaries