Companies with employees in the UK, Ireland and the Netherlands could have pan-European pension plan...
Companies with employees in the UK, Ireland and the Netherlands could have pan-European pension plans in place within the next couple of years says Mercer Human Resources Consulting.
That view is based on the official publication of the Pensions Directive - due shortly - which will give EU member states two years to implement relevant legislation.
"My personal view is that companies are likely to start with plans for the UK, Ireland and the Netherlands," says Mercer European partner Mark Sullivan.
"They are similar in terms of the way pensions work, and they are have far more pensions assets under management compared to other European countries."
The effects of the Pensions Directive are likely to be first felt by employees of multinational companies, but the benefits will filter through to all schemes in the long-term.
"If you increase the number of people in a scheme it results in lower per-capita costs. Even in the DC environment there should be something in it for scheme members," Sullivan says.
The European Commission this week gave added impetus to the changes set to take place by referring Denmark to the European Court of Justice over the issue of pension fund tax discrimination.
Denmark, is accused of higher rate taxation to pensions savings held by Danish scheme members in non-domestic funds.
The problem is mirrored in seven EU states, but the Court is expected to rule that such discrimination goes against EU law, which would open the way to true cross-border savings.
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
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