Solvency II

Funding deficits is still seen by trustees and sponsors as the most significant risk facing schemes, Metlife research shows.

EU plans to harmonise the Institutions for Occupational Retirement Provision directive with Solvency II capital requirements could dent the government's infrastructure ambitions, a Treasury minister says.

More than half of insurers are preparing to change the way they calculate regulatory capital as Solvency II approaches, Deloitte says.

European Commissioner Michel Barnier has announced a delay to the timetable to apply Solvency II rules to UK pension schemes, but "insisted" they will be included.

The government will continue to fight proposals by the European Commission to update its pensions directive to introduce solvency requirements for schemes, says Steve Webb.

EU officials were subject to bruising exchanges over the impact of Solvency II on UK pension funds during a work and pensions select committee hearing yesterday.

The Economic and Monetary Affairs Committee of the European Parliament has voted in favour of the Omnibus II directive - providing insurers with extra time to comply with Solvency II.

Manufacturers remain firmly committed to providing good quality pensions but fear European interference could make affordable provision impossible and increase bankruptcies.

Solvency II capital requirements for UK pension schemes should take into account the strength of the sponsoring employer, PwC suggests.

Hannah Brenton looks at the interim report of the Kay Review