Funded and private pensions

OECD guidelines relating to private pensions



OECD Core Principles of Private Pension Regulation

November 2016 - The OECD Core Principles of Private Pension Regulation provide governments, regulators and supervisors worldwide with a relevant common benchmark and high-level guidance on the design and operation of private pension systems.


OECD roadmap for the good design of defined contribution pension plans

June 2012 - Retirement saving pension plans (e.g. defined contribution plans) are increasingly an integral part of most countries’ overall pension system, while for some countries they are the main component of their pension system. Therefore, overall retirement income adequacy depends importantly on the pension benefits stemming from these plans. This roadmap identifies elements of good design and public policy to assist countries to strengthen retirement income adequacy in an environment where pension benefits result from assets accumulated during working life.


OECD/IOPS Good Practices on Pension Funds' Use of Alternative Investments and Derivatives

6 December 2011 - The Good Practices reflect what pension regulatory and supervisory authorities usually expect to examine when assessing the risk management of pension funds that use alternative investments and derivatives.  They outline how supervisors should oversee such investments and suggest possible regulatory controls. The character of the Good Practices emphasises the overriding principle that it is the responsibility of pension funds to develop their own alternative investment and derivatives policies in a responsible manner. As such, the Good Practices may also help and encourage pension funds to improve their risk management practices and thereby use these instruments safely and effectively.


OECD/ IOPS Good Practices for Pension Funds’ Risk Management Systems

11 January 2011 - These good practices aim to outline the main features of risk management systems which pension funds employ.  They cover the role of management in the risk management process, look in more detail at investment risk, funding risk and operational risk (including outsourcing) control, and the risk management mechanisms which might be in place (including monitoring and reporting). The good practices also provide guidance for pension fund regulators and supervisors on how to check that such systems are not only in place but are operating effectively.


Core Principles of Occupational Pension Regulation

7 July 2009 - The Core Principles aim to achieve more efficient regulation and management of company pension schemes. The Core Principles, which are non-binding, cover seven key areas: conditions for effective regulation and supervision; the establishment of pension entities; their funding and asset management; the protection of member and beneficiaries’ rights; and how funds should be governed and supervised.

They are supported by the corresponding sets of guidelines listed below.

The OECD has also set out a methodology to assess the extent to which countries comply with the Principles.


OECD Guidelines for Pension Fund Governance

7 July 2009 - These revised guidelines aim at setting international standards for the governance of private pension funds with a view to protecting people's pensions from mismanagement and fraud. They tackle issues such as stakeholder representation in pension fund boards, the requirements of expertise and knowledge of the board, and the implementation of risk-based governance structures and mechanisms. These guidelines update an OECD recommendation first issued in 2005.


OECD-IOPS Guidelines on the Licensing of Pension Entities

28 March 2008 - Jointly developed by OECD and IOPS, these guidelines provide a framework for licensing regulations and the assessment of licensing applications from pension entities to determine whether or not they stand up to certain criteria: adequate governance structures, management in the best interest of plan members and other beneficiaries, financial security and performance of pension entities and maximimum operational efficiency.


OECD Guidelines on Funding and Benefit Security in Occupational Pension Plans

10 May 2007 - These guidelines set out good practices in the area of pension funding and benefit security. They cover regulatory issues such as the valuation of pension liabilities, funding rules, the role of insolvency guarantee arrangements and creditor rights of pension plan beneficiaries in case of insolvency of the company that sponsors the pension plan.


Guidelines on Pension Fund Asset Management

26 January 2006 - These guidelines set out good practices in the area of pension fund asset management. They cover regulatory issues such as the prudent person rule, the statement of investment policy, quantitative investment limits and valuation.


OECD Guidelines for the Protection of Rights of Members and Beneficiaries in Occupational Pension Plans

September 2003 - These guidelines set forth core rights and protections for plan members and beneficiaries that are generally intended to be implemented and monitored by pension regulators and supervisors.


IOPS Principles of Private Pension Supervision

August 2006 - The IOPS ‘Principles of Private Pension Supervision’ were approved by the governing members at the Annual General Meeting held in Istanbul in 2006. These Principles cover topics such as objectives, independence, adequacy of resources and powers, risk-orientation, proportionality and consistency, consultation and cooperation, confidentiality, transparency and governance. As well as being widely adopted by IOPS member authorities, these Principles have been used in FSAP evaluations by the IMF and the World Bank. The Principles will be reviewed in 2010.



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