Solvency II-style capital requirements for pension schemes could cost employers £350bn, cut 180,000 jobs from the economy and cut the value of pensions, the Confederation of British Industry (CBI) has warned.
Research commissioned by the lobby group found the measures, which may form part of an overhaul of the Institutions for Occupational Retirement Provisions (IORP) directive, could cut long term growth by 2.5%. The CBI said the analysis, carried out by consultancy Oxford Economics showed it would be a "disaster" to introduce the requirements. Chief policy director Katja Hall (pictured) said: "The long term economic outlook is so fragile and uncertain that it is crazy to entertain proposals which would cost jobs and cut so deeply into our long-term growth and competitiveness." The CBI...
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