Pension supervision : understanding international practice and country context

This paper proposes an approach to classifying and measuring the primary elements of private pension supervision, and undertakes an evaluation using a representative set of countries. The analysis considers how supervision methods and style relate to the basic design of pension systems, and the broader environment in which they operate. Supervisory systems are shown to include six main elements, with considerable variation among systems in the scope, and intensity of activities within each element. The analysis concludes that there are discernible relationships between supervisory methods, and the context in which they are applied. The level of economic development, depth of capital markets, underlying legal framework presence of mandates, and number of funds supervised are found to be associated with depth, and intensity of supervision activities. These findings support the principle that the organization, and management of private pension supervision is significantly derived from the context, and environment in which these systems operate.

Risk-based supervision of pension funds : a review of international experience and preliminary assessment of the first outcomes

This paper provides a review of the design and experience of risk-based pension fund supervision in several countries that have been leaders in the development of these methods. The utilization of risk-based methods originates primarily in the supervision of banks. In recent years it has increasingly been extended to other types of financial intermediaries including pension funds and insurers. The trend toward risk-based supervision of pensions is closely associated with movement toward the integration of pension supervision with that of banking and other financial services into a single national authority. Although similar in concept to the techniques developed in banking, the application to pension funds has required modifications, particularly for defined contribution funds that transfer investment risk to fund members. The countries examined provide a range of experiences that illustrate both the diversity of pension systems and approaches to risk-based supervision, but also a commonality of the focus on sound risk management and effective supervisory outcomes. The paper provides a description of pension supervision in Australia, Denmark, Mexico and the Netherlands, and an initial evaluation of the results achieved in relation to the underlying objectives.Debt Markets,,Insurance&Risk Mitigation,Emerging Markets,Banks&Banking Reform

The Financial Crisis and Mandatory Pension Systems in Developing Countries: Short- and Medium-term Responses

financial crisis, pensions, financial risks, labor market risks

Improving regulations and supervision of pension funds : are there lessons from the Banking Sector?

The main objective of this paper is to review the regulatory framework for pension funds, and examine whether there is scope for improvements in pension regulation, particularly in light of regulatory and supervisory developments in the banking industry. The report is structured as follows: The second section summarizes the literature on banking regulation and supervision, identifying the areas of consensus and the trends in regulation and supervision across countries. The third section summarizes the literature on the regulation of pension funds. The fourth section examines the scope for improvements in pension regulation, identifying possible lessons from the banking sector to the pension industry. The fifth section provides a summary and concludes.Banks&Banking Reform,Financial Intermediation,Financial Crisis Management&Restructuring,Insurance&Risk Mitigation,Environmental Economics&Policies

Pensions in World Bank lending and analytical work : FY2002-2007

This paper presents an overview of the World Bank's lending and knowledge building activities that have improved pension systems in client countries during the past two decades. The objectives of this report are: i) to describe the policy framework that has guided the Bank's work on pension related issues; ii) to present relevant information about the nature and extent of the Bank's lending and policy advisory work in this area; and iii) to discuss some of the results that have been achieved through this work as well as future policy directions. The overview covers the level and characteristics of all lending operations that included a component related to pensions during FY2002-07, as well as over a longer time period going back to 1984 when the Bank initiated a meaningful level of pension work. Thus, this report updates the portfolio review that was a central element of the Bank's Independent Evaluation Group's (IEG) review of pension work that covered the period from 1984 through early 2004. The update provides an overview of the World Bank pension lending trends by region, type of intervention, sector board and type of lending instrument. This report concludes with observations about the results of the pension work and the priorities for the future.,Debt Markets,Banks&Banking Reform,Emerging Markets,Pensions&Retirement Systems

Bernard Shaw\u27s Arms and the Man

Arms and the Man is one of Shaw\u27s most beloved works. It\u27s commentary on love, war and society is as applicable today as it was in the late nineteenth century. The comedy of the play is seen through the juxtaposition of character and the changes in attitude the main character and others goes through as the play progresses. Given the current conflict our country is involved in, audiences of today can readily relate to the ideas presented by Shaw on war and military action. Love is a theme that is universal and remains a timeless theme in all entertainment media of today. The two opposing ideas of war and love are reflected in the production elements. The sets, costumes, props and even characters emphasis these two sides. By combining the forms of society with the utility of life and by the mixing of period elements with a contemporary color pallet, the production presents a traditional period play with a somewhat contemporary esthetic

Pension systems and reform conceptual framework

The WorldBank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, and then focuses on how best to work within these to achieve the core objectives of pension systems - protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory'zero pillar'extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory'first pillar'with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution'second pillar'that typically provides privately-managed individual savings accounts; (iv) a funded voluntary'third-pillar;'and (v) a non-financial'fourth pillar.'The primary evaluation criteria are the ability of the system to maintain adequacy, affordability, sustainability, equity, predictability, and robustness. The secondary evaluation criteria are the system's capacity to: minimize labor market distortions; contribute to savings mobilization; and contribute to financial market development. Because pension benefits are claims against future economic output, it is essential that over time pension systems contribute to growth and output to support the promised benefits. Going forward, the Bank is focusing on strengthening its support in: (a) establishing a clearer results framework to assess pension systems and reforms; (b) enhancing knowledge management, including research and learning; and (c) improving implementation capacity.Emerging Markets,Debt Markets,Environmental Economics&Policies,Pensions&Retirement Systems,Banks&Banking Reform

Poverty, Old-Age and Social Pensions in Kenya

This study is concerned with old-age poverty in Kenya. It is also concerned with strengthening and developing social pension programs for the elderly. In this study, we develop precise socioeconomic and demographic profiles of the elderly in Kenya from the viewpoint of providing policy-makers with information that may be useful in the reform and expansion of the pension system. It also analyzes the impact of current pension systems on poverty among elderly and national poverty. Further, the current study evaluates the potential effects that alternative policies and targeting alternatives may be expected to have on poverty within the country.Poverty, Social pensions, Kenya

Christ\u27s Method of Dealing with Sin

In this study we attempt to suggest at least a partial answer by examining the methods that our Lord Jesus Christ used when He confronted the sin of His hearers during His ministry. We agree with Dobbins when he says that the example of Christ is normative for our approach today

The new pensions in Kazakhstan : challenges in making the transition

In June of 1997 Kazakhstan embarked on a dramatic reform of its pension system, replacing the inherited pay as you go regime with one based entirely on fully funded individual accounts. This paper provides projections of the effects of this reform on income replacement rates and considers some possible adjustments to the system design, including those enacted in early 2005, that could address the projected outcomes of the reform. The initial reform which did not include any minimum pension guarantee is projected to result in a significant reduction in the individual income replacement rates derived from the pension system, especially for women. When the reform was mature and the old system fully phased out, women are projected to have received pensions at level of less than 15 percent of their pre-retirement earnings. Various potential adjustments to the reform, including the recent introduction of a citizens pension or"demogrant", are found to have the capacity to significantly raise these income replacement rates. The fiscal costs of alternatives are found to vary considerably due significantly to the degree to which they would target expenditures to lower income groups. The analysis of the original reform design and possible adjustments provides some useful lessons about the design of individual account systems in transition economies.Pensions&Retirement Systems,State Owned Enterprise Reform,Economic Theory&Research,Gender and Law,Youth and Governance