Towers Watson is warning that a proposed revision to a European Directive could potentially make it harder for employees to review their long-term defined contribution pensions offers.  The revision, in light of ‘pension freedom’, requests that employers do not move employee’s existing savings to a new vehicle. 

These potential changes, which haven’t been approved or denied, could also hurt an employers’ ability to consolidate pensions schemes in any kind of merger or acquisition.

While the European Parliament and Council of Ministers are commenting on the Commission’s proposal for a revised Directive, many HR experts aren’t overly concerned that this revision will make it through to a final. 

The Commission already proposed that any bulk transfers of members across borders should require the approval of scheme members, or at the very least some kind of representative. 

If any kind of final Directive does contain these requested provisions, HR experts are urging authorities to provide the necessary clarity about who could count as a member’s representative(s).  Currently, it is not clear whether the trustees of a UK pension scheme could fill this role.