Brian Hayes has tabled amendments to his own report on the IORP Directive, seemingly in an attempt to remove the risk of scheme mergers or accrual changes triggering full-funding requirements. In his initial report, the MEP suggested a scheme be required to meet technical funding provisions when it started operating “a new or an additional scheme”, raising concerns within the industry that changes to a fund’s accrual or contribution rates could be viewed as the launch of a new scheme. Hayes has now attempted to clarify his intention, amending the text to state that the merger of “two or more existing schemes or an addition of a new section to a scheme” should not be regarded as an additional scheme.
His amendment, dated 5 October, is in stark contrast with one tabled by Bas Eickhout, a Dutch MEP and member of the Greens, who amended the European Commission’s draft Directive to state that assets fully cover liabilities “at all times and under suitably prudent assumptions of future returns on assets in order to protect the interests of members”. Eickhout also tabled an amendment suggesting funds should not see stranded assets as part of a long-term strategy, and should have “effective mechanisms” for mitigating risks.
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