Corporates unprepared for pensions directive

ABN Amro has warned that most UK companies are unaware of the impact that the EU Pensions Directive will have on their finances. The Directive, which comes into force a year from today, sets out a new regulatory framework for defined benefit pension schemes. The Directive requires that companies have sufficient ?technical provisions? ? enough money to provide for the pension scheme benefit payments. The directive also stipulates that, should deficits arise, they must be removed over a ?limited? period.