The European Parliament's Economic and Monetary Affairs Committee has put forward final amendments t...
The European Parliament's Economic and Monetary Affairs Committee has put forward final amendments to the proposed Occupational Pensions Directive that do not threaten the lump sum payment.
The threat was raised in some of the UK's more anti-EU press last month, but in a call to IFAonline, the Committee's vice chairman John Purvis, a Scottish Conservative and Unionist Party MEP confirmed that the threat was more theoretical than actual.
"Many committee members and those in the left bloc are not keen on the 'lump sum', which is very much a UK matter," he said then.
However, a significant number of Committee members abstained from voting on the amendments at a previous meeting to protest what they saw as over-the-top moves to impose a system relying on so-called "biometric risk" factors that would make pensions significantly more expensive to buy.
These abstentions indicated that there was enough support from different factions within the Parliament to rely on a compromise deal that would retain the lump sum payment, Purvis added
The NAPF today says that the final amendments the Parliament will vote on represent a "climbdown" by the institution.
Christine Farnish, NAPF Chief Executive, says: "The NAPF is relieved to see that the main threats to our established occupational pension system appear to have gone away."
"However, we still have some concerns, especially over pension scheme funding measures. A lot now depends on how the government chooses to implement the Directive."
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