Funded and private pensions

Personal Pension Plans


Private schemes and operators are playing a growing role in pension systems. This trend is likely to intensify in future years as governments come to face the consequences of ageing populations on their public pension systems. Already in most OECD countries private schemes play an important role as complements to the public system.

The Working Party on Private Pensions has decided to create a Task Force devoted to personal pension plans. Given the important role of the insurance sector in this market, the Task Force will report both to the Working Party on Private Pensions and the Insurance Committee. Therefore, this Task Force will include representatives from ministries, official supervisory authorities and the private sector, competent for Insurance or/and Pensions. The Task Force first meeting was held on 18 June 2001 at the OECD headquarters.

A selection of issues to be handled by the Task Force is given hereafter:

  • Role of the personal pension schemes in the financing of pensions (as compared to savings and to other pension contributions and benefits, contracting-out effects ...)

  • Role of insurance in the personal pension plan market

  • Pension products analysis (current range of pension products and their technical specificities, trends, innovation, guarantees, fees ...)

  • Advantages and drawbacks of the personal pension plans development (efficiency, flexibility, social risk, financial risk ...)

  • Marketing and distribution issues (mis-selling issues, consumer protection, role of the intermediaries, transparency and disclosure, commissions ...)

  • Annuities issues (different types of annuities, mandatory annuitization, indexed annuities ...)


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