IOPS Working Papers on Effective Pension Supervision

2008 | 2007 | Call for papers  

As the proportion of retirement income provided by private pensions becomes increasingly important, the quality and effectiveness of their supervision becomes more and more crucial. The IOPS Working Paper Series, launched in August 2007, highlights a range of challenges to be met in the development of national pension supervisory systems.The papers review the nature and effectiveness of new and established pensions supervisory systems, providing examples, experiences and lessons learnt for the benefit of IOPS members and the broader pensions community.

2008

• Working Paper No.8: Supervisory Oversight of Pension Fund Governance
  This working paper mainly analyses the responses of IOPS members to a survey on supervisory oversight of pension fund governance. The survey and responses cover the current focus, issues and problems as well as future developments. A few case studies are also included in the paper to illustrate the different types of issues that pension fund systems may face and the means that may be adopted by the relevant supervisory authorities to resolve these issues.

• Working Paper No.7: Transparency and competition in the choice of pension products: The Chilean and UK experience
  This paper discusses two countries building centralised information and quotation systems for annuity products to help individuals select the right retirement product at the right price. The SCOMP system in Chile is examined and developments around the Open Market Option (OMO) in the UK are discussed, with lessons drawn for other pension supervisory authorities contemplating introducing such centralised systems.

• Working Paper No.6: Comparison of Costs and Fees in Countries with Private Defined Contribution Pension Systems
  The fees and charges imposed upon pension funds are of great interest and importance to pension supervisory authorities as they have a significant impact on the amount of retirement income delivered to individuals, particular in the case of defined contribution (DC) pension schemes. Yet administrative fees are charged for services in different ways, with the diversity of charges and the specific details involved in each case making it impossible to directly compare administrative charges nationally and internationally. This paper therefore attempts to model such charges on a unified basis to allow for a standardized international comparison, known as the charge ratio.

• Working Paper No.5: Information for Members of DC Pension Plans: Conceptual Framework and International Trends
  In recent years, the shift towards defined contribution (DC) pension plans has been a key trend in the field of private pension provision. In this context, where a wide range of options may potentially be available to individual plan members, it is crucial to ensure that they have the information necessary to make appropriate choices. Based on the findings of an IOPS survey, this paper offers a conceptual framework for considering information provision within the context of the pension system and related factors (such as the range of choices offered to individuals, the use of default options, the level of financial literacy, etc).

2007

• Working Paper No.4: Experience and Challenges in Introducing Risk-based Supervision for Pension Funds (please note the version posted contains updated figures for the German pension system)
  Just as other financial sectors have moved towards a “risk-based” approach to supervision, pension supervisory authorities are also looking to follow the handful of pioneer authorities which have adopted these methods, namely the Netherlands, Mexico, Denmark and Australia. Examining some countries that have learnt from these pioneers, this paper focuses on the experiences and challenges they have faced in adopting risk-based pension supervision.

• Working Paper No.3: Utilisation of Information Technologies in Off-site Supervision of Private Pension Systems
  The increasing intricacies of private pension systems raise the importance of supervising these systems effectively. How can IT be used to do this? How can IT be integrated into an existing system? With a case study on Turkey, this paper lays out a field for discussion of this question, offering some initial suggestions for international good practise.

• Working Paper No.2: Supervisory Education, Outreach and Communication, including Training of Trustees
  Some pension supervisors have responded to the growing complexity and importance of private pension provision by delivering educations programs for pension fund managers, fiduciaries and members. This paper draws together information on how and why these programs are carried out, analysising their impact and effectiveness in examples from Kenya, Ireland, South Africa and the UK.

• Working Paper No.1: A Review of the Pros and Cons of Integrating Pension Supervision with that of Other Financial Activities and Services
  With the rise of large conglomerates offering a range of financial services, is a single agency the most appropriate means of sypervising financial intermediaries (banks, insurance companies, securities firms)? Should Pension Funds be supervised by such integrated authorities? Examining a range of arguments, this paper concludes that the answer depends on the context and environment of the pension system.

Call for papers

This working paper series aims to fill a gap in pension research by focusing specifically on supervisory issues. These are of increasing importance to all IOPS member countries and the broader pensions community due to the rise of private pensions and the move to a risk-based supervisory environment.

The IOPS welcomes submissions for the working paper series. Authors who have papers covering relevant issues and who are interesting in submitting them for inclusion in the series should contact the IOPS Secretariat.