Pensions minister Steve Webb has vowed to fight potentially "catastrophic" EU plans to impose funding rules to British occupational pensions.
Webb said new rules to be introduced by the EU could have "catastrophic" consequences to British company pension schemes, reports the Telegraph.
The pensions minister vowed to fight the plans and said there would be "no compromise" over the proposals, which could see many pension schemes being killed off.
The European Insurance and Occupational Pensions Authority (EIOPA) has been looking at rules to assess the solvency of pension funds, which providers say would ramp up their costs as more funding would need to be injected.
PricewaterhouseCoopers (PwC) has previously estimated the changes could cost businesses in this country up to £500bn and the additional costs would ultimately be borne by individual savers, who would see less generous pensions.
The Solvency II rules to "harmonise" schemes would affect all private sector companies offering defined benefit (DB) schemes in Britain, representing around half of the private pension assets in this country, with liabilities of around £1,200 billion, the Government said.
Webb, who has been holding talks with politicians and pension experts in the Netherlands and Denmark, said despite the European Commission extending its timetable on the issue, the prolonged uncertainty means schemes are becoming increasingly unsure about how they should be investing.
"There will be no compromise on Solvency II," he said. "It is unbelievable the Commission is pressing ahead with these pointless proposals which would cost UK employers with final salary schemes hundreds of billions of pounds and lead to DB scheme closures."
He added: "We will not let up until we make the Commission see sense. We expect them to publish a comprehensive impact assessment to clearly expose the catastrophic effect these rules would have on British pension schemes. It is horrifying these plans have got so far without this."
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