IOPS Working Papers on Effective Pension Supervision

Published in August 2007, this series of four working papers highlights a range of challenges to be met in the development of national pension supervisory systems.

As the proportion of retirement income provided by private pensions becomes increasingly important, the quality and effectiveness of their supervision becomes more and more crucial. The series therefore reviews the nature and effectiveness of new and established pensions supervisory systems, providing examples, experiences and lessons learnt for the benefit of IOPS members and the broader pensions community.

• Working Paper No.1: A Review of the Pros and Cons of Integrating Pension Supervision with that of Other Financial Activities and Services
  With the rise of large conglomerates offering a range of financial services, is a single agency the most appropriate means of sypervising financial intermediaries (banks, insurance companies, securities firms)? Should Pension Funds be supervised by such integrated authorities? Examining a range of arguments, this paper concludes that the answer depends on the context and environment of the pension system.
• Working Paper No.2: Supervisory Education, Outreach and Communication, including Training of Trustees
  Some pension supervisors have responded to the growing complexity and importance of private pension provision by delivering educations programs for pension fund managers, fiduciaries and members. This paper draws together information on how and why these programs are carried out, analysising their impact and effectiveness in examples from Kenya, Ireland, South Africa and the UK.
• Working Paper No.3: Utilisation of Information Technologies in Off-site Supervision of Private Pension Systems
  The increasing intricacies of private pension systems raise the importance of supervising these systems effectively. How can IT be used to do this? How can IT be integrated into an existing system? With a case study on Turkey, this paper lays out a field for discussion of this question, offering some initial suggestions for international good practise.
• Working Paper No.4: Experience and Cahllenges in Introducing Risk-based Supervision for Pension Funds (please note the version posted contains updated figures for the German pension system)
  Just as other financial sectors have moved towards a “risk-based” approach to supervision, pension supervisory authorities are also looking to follow the handful of pioneer authorities which have adopted these methods, namely the Netherlands, Mexico, Denmark and Australia. Examining some countries that have learnt from these pioneers, this paper focuses on the experiences and challenges they have faced in adopting risk-based pension supervision.

IOPS President, John Ashcroft said that “IOPS has rapidly developed a global reach and is answering a real need among pensions regulators worldwide to share experiences and knowledge. In launching this series, IOPS aims to fill a gap in pension research by focusing specifically on supervisory issues. These are of increasing importance to all IOPS member countries and the broader pensions community due to the rise of private pensions and the move to a risk-based supervisory environment.”

The IOPS welcomes submissions for the Working Paper series. Authors who have papers covering relevant issues and who are interesting in submitting them for inclusion in the series should contact the IOPS Secretariat.