E.U. pension funding ruling could affect U.K. plans; Experts say measure contradicts current requirements in the United Kingdom.(News)

Business Insurance, May, 2003 by Payne, Beatrix

Byline: BEATRIX PAYNE LONDON-U.K. pension funds could be forced to take a major step backward under new funding rules adopted by the European Parliament. Pension experts fear the rules would force U.K. plans to be 100% funded at all times-a requirement that could push pension plans into far more conservative asset allocations that would ultimately be more expensive to plan sponsors.

The European directive "appears to be contradictory to (existing U.K. funding rules) and would put us under a strict funding requirement that we would not want at the moment,'' said Mike Stockwell, head of pension policy for the ?800 million ($1.28 billion) Kodak Ltd. Pension Plan, the Hemel Hempstead, England, subsidiary of Eastman Kodak Co. The United Kingdom is Europe's...

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