Managing and Supervising Risks in Defined Contribution Pension Systems
International Organization of Pension Supervisors Working Paper No. 12
88 Pages Posted: 15 Apr 2011
Date Written: October 1, 2010
Defined contribution (DC) plans are playing a larger role in pension systems around the world. Pension supervisory authorities are consequently asking if their oversight approaches need to adapt to this development – given that the risks within DC systems are born by the plan members themselves?
This paper highlights the key challenges for DC supervisors, outlining the different mechanisms which can be used to control risks within DC systems, and how the use of these mechanisms informs the supervisory approach. Case studies of IOPS members overseeing DC systems are also provided.
Keywords: Defined Contribution Pensions, Supervision, Risk-Management
JEL Classification: G23, G32
Suggested Citation: Suggested Citation