Adopting the Solvency II requirements will result in the closure of defined benefit schemes and subsequently create substantial job loss, various lobbying groups have warned.

The Confederation of British Industry, the National Association of Pension Funds and the Trades Union Congress collaborated on a letter that was authored and then sent to European Commission President José Manuel Barroso, as well as Commissioners Rehn, Barnier and Andor, according to Professional Pensions.

The government officials wrote that implementing Solvency II will force remaining defined benefit plans to close, and will adversely affect economic growth by diverting capital away from investments into job creation and research, Money Marketing reports.

The letter stated its support of making sure that pension scheme members "benefit from risk-related regulation," according to the media outlet. However, it insisted the plan proposed by the Commission are not the right ones for achieving this goal. "By demanding dramatic increases in funding from employers, the Commission's plans would – at best – force all remaining defined-benefit schemes to close and – at worst – push many businesses into insolvency, leading to significant job losses."

Market experts have estimated that implementing the regulations could cost the U.K. economy up to £1 trillion pounds, the media outlet reports.