Designing adequate defined contribution (DC) pensions:
Global experience and lessons from Asia-Pacific

2-3 November 2010, Sydney, Australia

 

Hosted by the Australian Prudential Regulation Authority (APRA), the Annual OECD/IOPS Global Forum on Private Pensions took place in Sydney, Australia, on 2-3 November 2010. The IOPS Committee Meetings and the IOPS Annual General Meeting preceded the Global Forum on the 1-2 November. APRA organised a Flyer of the Training Superannuation Seminar on 4-5 November.

The main objective of the Global Forum was to examine innovative governmental policies intended to enhance the security and adequacy of defined contribution (DC) retirement plans – which represent a growing share of retirement savings in the Asia-Pacific region and globally. The recent financial crisis, which had a negative impact on the asset value and benefit adequacy of such plans, has further compelled governments around the world to take action to strengthen regulatory requirements and supervisory policies with respect to the operation of these plans.

The topics addressed at the Global Forum include:

• Pension reform process and recent developments in Asia-Pacific
• Supervisory techniques and approaches to oversee DC pensions
• Challenges and costs of introducing guarantees for DC pension plans
• Innovative approaches to measure the ‘retirement readiness’ of ageing populations
• Optimal structure and design of DC pension plans

The Global Forum brought together high-level officials from regulatory and supervisory authorities, leading experts from pension fund industry and research institutes from both OECD and IOPS Member countries and participants from Asia Pacific region. Representatives from international organizations, including the World Bank, the International Monetary Fund, and the Asian Development Bank also participated in the event.

 

Documentation

Flyer of the Global Forum on private pensions
Flyer of the Training Superannuation Seminar
Information note for participants

Agenda

Conference Proceedings

 

Opening Remarks

• Ambassador Richard Boucher, Deputy Secretary General, OECD.
• Ambrogio Rinaldi, Chairman OECD Working Party on Private Pensions.
• Ross Jones, Deputy Chairman of the Australian Prudential Regulation Authority, President IOPS.

Session 1: Pension System Developments in Asia

Asian Roundtable

Moderator

• André Laboul, Head of Financial Affairs Division, OECD, Secretary General of IOPS.

Speakers

• Corazon S. de la Paz-Bernardo, President of ISSA, Social Security Commission.
• Don Yeo, Deputy CEO, Central Provident Fund Board, Singapore .
• Datuk Ranjit Ajit Singh, Managing Director, Securities Commission of Malaysia.
• Son Tran Van, Director of International Affairs Division in charge of Social Policies, Ministry of Finance, Taiwan.
• Puskal Upadhyay, General Manager, Pension Fund Regulatory and Development Authority, India
• Moch Muchlasin, Development and Information Division, Ministry of Finance, Indonesia.

Background Documents

• Experiences of Social Pension in Vietnam (2001-2009).
• About the Central Provident Fund of Singapore.
• Pensions in Asia/Pacific: Ageing Asia must face its pension problems.

 

Session 2: Supervising DC Pensions

Moderator

• Edward Odundo, Vice President IOPS, Chief Executive, Retirement Benefits Authority, Kenya.

Speaker

• Fiona Stewart, Principal Administrator, OECD/IOPS.
  • Supervising DC Pension Systems

Discussants

• Ross Jones, Deputy Chairman, Australian Prudential Regulation Authority.
  • Supervising DC Pensions: Liquidity Risk 
• Darren McShane, Executive Director (Regulation and Policy), Mandatory Provident Fund Schemes Authority, Hong Kong, China.
  • Supervision of DC Schemes: Conflicts of Interest
• Corona Radulescu, Director of the Regulatory and Licensing Division; Romanian Private Pension System Supervisory Commission.
• • Outsourcing Risk

Background Documents

• IOPS Working Paper 12
• CEIOPS Report on Outsourcing by IORPs

 

 

Session 3: Guaranteeing DC Pensions

Moderator

• Lorena Masias Quiroga, Superintendencia de Banca, Seguros y AFP, Peru.

Speaker

• John Piggott, University of New South Wales, Australia.
  • Pension Guarantees

Discussants

• Slavka Polakovicova, National Bank of Slovakia.
  • Guaranteeing DC Pensions
• Solange Berstein, Superintendent Pensions, Chile.
  • DC Pension Schemes and the Role of Government Guarantees
• Andrew Boal, Convenor of the Superannuation and Employee Benefits Practice Committee, Institute of Actuaries of Australia.
  • Designing Adequate DC Pensions: Guarantees

Background Documents

Session 4: Retirement Readiness Project – Initial Ideas

Moderator

• Pedro Ordorica, President of National Commission for Retirement Savings (CONSAR), Mexico.

Speakers

• Brigitte Miksa, Head of International Pensions, Allianz Global Investors.
  • Retirement Readiness
• Alicia Munnell, Centre for Retirement Research, United States.
  • Retirements at Risk: The Outlook for the United States
• David Tuesta, Director of Research and Chief Economist, Global Tendancies Unit, BBVA.
  • Retirement Readiness: A Challenge for Pension Systems in Latin America~Retirement Readiness: A Challenge for Pension Systems in Latin America

Background Documents

• The National Retirement Risk Index: After the Crash

 

Session 5: Policy Recommendations for DC Pension Design

Moderator

• Ambrogio Rinaldi, Chairman, OECD Working Party on Private Pensions.

Speaker

• Pablo Antolin, Senior Economist, OECD.
  • Improving the Design of DC Pensions~Improving the Design of DC Pensions

Discussants

• Olivia S. Mitchell, The Wharton School, University of Pennsylvania, United States. 
• Hazel Bateman, Centre for Pensions and Superannuation, University of New South Wales, Australia.
  • The Pay-out Phase
• Alicia Munnell,Centre for Retirement Research, United States.
• • Improving Defined Contribution Payouts: The Role of Annuities
• Michael Fisher, Research Officer, ACTU.
  • The Politics of Reform The Politics of Reform

Background Documents

• Protecting Retirement Income: Improving the Design of DC Pension Plans

Closing Speech and Closing Remarks

• Minister Bill Shorten, MP. Assistant Treasurer, minister for Financial Services and Superannuation, Australia.
• Ambrogio Rinaldi, Chairman, OECD Working Party on Private Pensions.
• André Laboul, Head of Financial Affairs Division, OECD and IOPS Secretary General.
• Ross Jones, Deputy Chairman of Australian Prudential Regulation Authority.