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Protecting Pensions

Policy Analysis and Examples from OECD Countries

image of Protecting Pensions

Pension fund members across OECD countries have seen the loss or reduction of pension benefits in recent years. This has been associated with declining assets and increasing liabilities, with accounting and regulation changes crystallising these problems. Consequently, the issue of how to protect pension benefits has returned as a major topic of policy debate for many governments and for the pension industry worldwide. OECD countries have responded in different ways:

  • Re-examining and altering accounting and funding rules;
  • Strengthening or introducing pension benefit guarantee schemes; and
  • Looking at the related issue of whether pension benefits should receive protection in bankruptcy and insolvency procedures.

Finally, debate has also focused on whether pension fund related risks can or should be shared, with guarantees for insured or pension products attracting renewed attention.

This volume looks at various methods of protecting pension benefits. It provides in-depth information on the application of these methods in OECD countries and analyses their advantages and drawbacks. Methods of risk sharing amongst pension fund beneficiaries, providers and sponsors are discussed through an analysis of insured pension contracts and of the pension systems in place in Denmark and Iceland. This publication offers unique international comparative and analytical data for policy makers and pension industry participants globally.

English

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Pension Fund Regulation and Risk Management: Results from an ALM Optimisation Exercise

This paper provides a stylised assessment of the impact of investmentrelevant pension fund regulations and accounting rules on contribution and investment strategies within the context of an asset-liability model (ALM) specifically designed for this purpose. The regulations and accounting rules considered represent, in a simplified way, the situation in Germany, Japan, the Netherlands, United Kingdom and United States. These countries were studied for their differences in regulations, including some major regulatory initiatives in recent years, as well for the size of their defined benefit (DB) systems. The analysis could in principle be extended to other countries or regulations.

English

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