Guidelines on Funding and Benefit Security: Public Consultation

The OECD is seeking the views of stakeholders in private pension systems - governments, private pension supervisors, national associations of pension plan sponsors, national pension fund associations, benefit consulting firms, actuarial associations, international financial institutions who manage or provide pension products, and NGOs that deal with private pension issues – on the draft text of the OECD Guidelines on Funding and Benefit Security for occupational pension plans. Comments of all sorts are welcome – from a general assessment of only a few lines to detailed, point-by-point remarks. Comments received will be considered at the next meeting of the Working Party on Private Pensions.

The OECD draft Guidelines lay down a framework for modernising funding regulations in order to meet the goals of financial security of pension funds and adequate level of pensions. The OECD draft Guidelines on Funding and Benefit Security tackle issues such as the valuation of pension liabilities, funding objectives and regulatory requirements, plan termination procedures (including creditor rights for pension benefits), and guarantee arrangements.

The OECD draft Guidelines are the first such standard at the international level on pension funding regulations. They reflect the views of Delegates from the OECD’s 30 members as well as from three other countries (Brazil, Israel and Russia) and several international organisations that have observer status in the Working Party on Private Pensions, the OECD body that developed the guidelines, under the aegis of the Insurance and Private Pensions Committee.

The draft Guidelines are primarily addressed to governments, though some refer to the standards developed by the actuarial profession.

Procedure

DRAFT TEXT: Download the draft Guidelines on Funding and Benefit Security in pdf format.

CONTACT: Comments may be sent to Sally Day, OECD Financial Affairs Division [sally.day@oecd.org].

CUT-OFF DATE FOR COMMENTS: In order for comments to be considered promptly by the Working Party on Private Pensions, they must be received by 15 September 2006.

POSTING COMMENTS: Comments will be posted on the OECD website of the Working Party on Private Pensions (www.oecd.org/daf/pensions). It is the policy of the OECD to publish all responses, and anyone not wishing to have his/her response published, or anyone wishing to remain anonymous, should say so explicitly.

COMMENTS NAMING ORGANISATIONS AND INDIVIDUALS: The purpose of the consultations is to provide inputs of generic interest for the consideration of the Working Party on Private Pensions – they are not intended for use as a forum for waging campaigns and self-promotion.