Europe's finance ministers have announced a political agreement on an EU occupational pensions directive.

The legislation aims to create an EU wide prudential framework for cross border pension schemes that will protect the rights of future pensioners and help pension schemes operate more efficiently.

Forum Response: Association of British Insurers

Joanne Segars, head of pensions at the ABI, told ePolitix.com: "We believe the prudent person approach is a sensible one, as it has produced good returns over the years for pension funds.

"The directive complements the UK regulatory system for pensions and it will allow pension schemes the freedom to continue providing pensioners with strong returns without further unnecessary regulatory burdens."

Forum Response: National Association of Pension Funds

A spokeswoman for the National Association of Pension Funds told ePolitix.com: welcomes any decision reached on the EU pensions directive which doesn't add any extra burden to UK pensions and which makes some progress towards cross border pension provision. We see this compromise plan as a step in the right direction"