Pension Risk and Risk-Based Supervision in Defined Contribution Pension Funds

Randle, Tony ; Rudolph, Heinz P.

World Bank, Washington, DC

关键词: ACCESS TO CAPITAL;    ACCOUNTING;    ANNUAL RETURNS;    APR;    ASSET ALLOCATION;   

DOI  :  10.1596/1813-9450-6813
RP-ID  :  WPS6813

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Defined contribution pension systemshave faced criticism in the wake of the financial andeconomic crisis for not delivering adequate and sustainablepension incomes at retirement. Much of the problem hascentered around the misalignment of pension fund managementcompanies and the interests of pension fund members, withthe focus on short-term volatility rather than deliveringadequate pension income over the long term. Although pensionfund supervisors in emerging economies have attempted tocorrect for these market failures, they have not focusedsufficiently on the ultimate long-term pension incomeobjective. The paper suggests that in order to have ameaningful impact on future pensions, the supervision ofdefined contribution pension systems needs to take a moreproactive role in minimizing pension risk. This objectivewould require ensuring that investment risks are alignedwith the probability of achieving a target pension atretirement age. The paper also suggests that a properinstitutional design of the pension fund industry andintensive use of market surveillance are efficient tools fordealing with most of the operational risks of funded pensionfund schemes in emerging economies.