February 2017

04Feb

Risk of Disability, Old Age and Death: Pension Sustainability in Colombia

By Sergio Clavijo, Alejandro Vera Sandoval, David Malagón, Laura Clavijo, Andrea Ríos Serna, Ekaterina Cuellar & Nelson Vera This document concludes that the sustainability of the RPM (Pay-as-you-go, defined benefits public regime) looks fragile and is threatened by massive transfers from the RAIS (defined contributions private regime) to the RPM. The fiscal deficit of the RPM could be rising from 140% of GDP (in NPV) to 228% of GDP during the next three decades on account of the migration of...

February 4, 2017
Aging, Articles, System Sustainability,
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04Feb

Behavioural Science in Law & Policy: Evidence, Ethics, & Expertise

By Newcastle University Behavioural economics, and behavioural science more generally, has become an increasingly salient aspect of modern policy debates. Despite the current enthusiasm amongst governments and policy-makers for behavioural approaches, there are potential problems with the use of the behavioural sciences to formulate public policy, many of which remain underexplored. This workshop brought together papers from a range of different disciplinary, regulatory, and practical perspectives to examine the potential benefits and pitfalls of behavioural science as applied to policy. The workshop...

February 4, 2017
Articles, Regulation,
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04Feb

Regulation and Supervision of Pension Funds in India

By S. P. Subedar Power Point Presentation. Occupational pension funds need to be regulated and supervised. A statutory role in the form of Scheme Actuary needs to be created for DB pensions.Adequate information need to be provided annually to the DC pension subscribers about the likely accumulation and pension pay out on their retirement. These measures would ensure that all pension issues are addressed in a holistic manner and cohesiveness is brought in regulation and supervision of pension business. (more…)

February 4, 2017
Articles, Regulation, Supervision, , ,
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04Feb

New Architectures in the Regulation and Supervision of Financial Markets and Institutions: The Netherlands

By Henriëtte Prast & Iman Van Lelyveld In recent years, several European Union member states have modified the institutional design offinancial supervision. These reforms pose the question which considerations have led to the different models chosen in these countries. We analyse the considerations in the Netherlands leading to the choice in 2002 of the twin -peaks model of financial supervision. The new model is based on the objectives of supervision. Thus, a separate authority is responsible for conduct-ofbusiness supervision, whereas...

February 4, 2017
Articles, Regulation, Supervision, ,
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04Feb

Security of Retirement Benefits in Canada: You Bet Your Life?

By Ronald B. Davis This paper provides a careful review and analysis of employment-based pensions and other post-retirement benefits that may be available to Canadian workers when they retire, with particular emphasis on the extent to which such benefits are vulnerable to unilateral employer alteration or cancellation, and to the risks which arise in the event of the employer's insolvency.  Taking stock of key differences between the rights of unionized employees and non-unionized ones, the author argues that the legal...

February 4, 2017
Adequacy, Articles, Labor Market, Regulation,
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04Feb

Sustainability of Pension Systems in Europe – The Demographic Challenge

By Chris Daykin Fiscal sustainability of pensions is a serious issue in Europe because of the ageing of the population but there is also concern that reformed pensions may not be adequate. Actuaries have always been seen as major players in employer-sponsored pension schemes and insured pensions but have often not been very visible in commenting on public policy issues concerning the pension system as a whole. This article introduces the work being done by the Actuarial Association of Europe...

February 4, 2017
Aging, Articles, Labor Market,
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04Feb

Assessing the Distortions of Mandatory Pensions on Labor Supply Decisions and Human Capital Accumulation: How to Bridge the Gap between Economic Theory and Policy Analysis

By Mukul Rutkowski, David A. Robalino & Andras Bodor Mandatory pension systems play a major role in individual savings and labor supply decisions. In particular, it is well known that defined benefit pension schemes, which are not actuarially fair, can create incentives for early retirement and therefore reduce labor supply and the stock of human capital in a given country. This is an important policy issue in middle-income countries, with still low participation rates in the labor force, where the...

February 4, 2017
Adequacy, Articles, Labor Market, ,
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04Feb

Adequacy, Fairness and Sustainability of Pay-as-You-Go-Pension-Systems: Defined Benefit Versus Defined Contribution

By Jennifer Alonso-García, María el Carmen Boado-Penas & Pierre Devolder There are three main challenges facing public pension systems. First, pension systems need to provide an adequate income for pensioners in the retirement phase. Second, participants wish a fair level of benefits in relation to the contributions paid. Last but no least, the pension system would need to be financially sustainable in the long run. In this paper, we analyse defined benefit versus defined contribution schemes in terms of adequacy,...

February 4, 2017
Adequacy, Articles, System Sustainability,
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04Feb

Default Investment Strategies in a Defined Contribution Pension System: A Pension Risk Model Application for the Chilean Case

By Félix Villatoro, Solange Berstein & Olga Fuentes In a defined contribution pension system, one of the main risks faced by members refers to the investment of funds. In this context, we discuss which is the most suitable risk measurement for the affiliates to the pension system. Different life-cycle investment strategies are evaluated under this measure for different types of workers. We point out the importance of designing well-suited default investment options in light of the economic behavior of members,...

February 4, 2017
Articles, Regulation, Supervision,
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04Feb

Governance and Performance Measurement of Pension Supervisory Authorities

By Fiona Stewart, John Ashcroft & Nina Paklina The governance, oversight and performance measurement of financial supervisory authorities are increasingly recognized as important topics – not least due to the recent financial crisis and perceived problems in (and lack of) the regulatory oversight of financial institutions. Yet this is a relatively under-researched area, particularly in relation to pension supervision. This paper therefore attempts to combine theoretical material from a range of financial sectors along with practical examples from the pensions...

February 4, 2017
Articles, Corporate Governance, Regulation, Supervision,
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