The Association of British Insurers has come out against revamped European Commission proposals forcing pension schemes to account for their liabilities by using a “risk-free” rate of return, as consultants urged schemes to reply to a consultation exercise by its January 2 deadline.

The EC wants to extend the Solvency II "risk free" rules for insurers to occupational pension schemes. The European Insurance and Occupational Pensions Authority, Eiopa, supervisory body published a 517-page consultation paper in October, outlining the ways in which Solvency II could be applied to schemes via changes in Europe's Institutions for Occupational Retirement Provisions, Iorp.