Benefit Security Pension Fund Guarantee Schemes
By Fiona Stewart · Organisation for Economic Co-operation and Development · 2007 · OECD Working Paper on Insurance and Private Pensions No. 5
Study guide: Exam RET-201
A January 2007 OECD working paper on pension benefit guarantee schemes, the insurance-type arrangements, with premiums paid by pension funds, that take on obligations the insolvent sponsors of pension plans cannot meet. It sets out the arguments for and the challenges facing such schemes, practical issues in setting them up, and case studies of the schemes in the USA, Canada, the UK, Germany, Sweden, Switzerland and Japan. Its key conclusion is that, to work effectively, these schemes need suitable independence and powers to set and collect appropriately risk-adjusted premiums, and should be considered along with other benefit protection policies, notably effective funding rules.
On the syllabus
- Exam RET-201 — RET201-119-25: Benefit Security Pension Fund Guarantee Schemes (pp. 4-13); outcome 5a.
I Introduction
II Arguments for Benefit Guarantee Schemes
- i Market Failure
- ii Diversification
III Challenges for benefit guarantee schemes
- i Moral Hazard
- ii Adverse Selection
- iii Systematic Risk Issues
IV Practical Issues
- i Political vs. Economic
- ii Alternatives
- iii Other guarantee schemes
V Conclusion
VI Country Studies
- 1 USA
- 2 Canada
- 3 UK
- 4 Germany
- 5 Sweden
- 6 Others
- i Switzerland
- ii Japan
Bibliography
Sources
- Benefit Security Pension Fund Guarantee Schemes (Fiona Stewart, OECD Working Papers on Insurance and Private Pensions No. 5, January 2007) — the document, read from the 38-page PDF (sha256 dc3ad173f26972f2f8ef2b15a077994988bd25d18a237c8714575a57e53f8aae): title page, abstract for the lead, and the section headings; the paper prints no table of contents, and printed pages 4-13 run from section I to the opening of section VI
- RET 201 Syllabus, Mar 2027/Jul 2027 (SOA) — the citation ("RET201-119-25: Benefit Security Pension Fund Guarantee Schemes (pp. 4-13)") and the learning outcome
- RET 201 Introductory Study Note, March 2027/July 2027 (SOA) — the study-note code RET201-119-25 and its former code RPIRM-154-18; the syllabus itself names no author, so the document was identified by its title