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									       PENSION STATISTICS:
   improve international comparability




Organisation for Economic Co-operation and Development


                                                            Jean-Marc Salou
                                             OECD Financial Affairs Division
                           Workshop on ‘Retirement Data’ , Reykjavik, Iceland
                                                                1
 Why pension funds statistics?

Pension funds are the main source of long-term
  savings
Interaction with capital markets in important ways
OECD activities through the Working Party on Private
  Pension which support the Insurance Committee
Use in macro-economic, financial and social policy
 “getting policy right depends upon accurate data and analysis.” Tony Blair, January 2000



                                                                                  2
Meeting users’ needs

Among policy-makers and regulators
  – Pension fund supervisory institutions
  – Ministries involved in the design of pension arrangements and
    regulators


From the private sector
  – Employers acting as plan sponsors, pension plan administrators,
    pension fund managers
  – The financial market community, including asset management
    companies, insurance companies, custodians, actuaries and
    benefit consulting firms

                                                         3
                                                                3
How to meet needs?

Use of a common conceptual framework: the
  taxonomy


Make a better use of existing data
New data collection


                                             4
                                                 4
The development of a taxonomy

One of the key activities of the OECD
  Working Party on Private Pensions and
  the International Network of Pensions
  Regulators and Supervisors (INPRS)


Necessary both for future data
  collection projects and policy discussion




                                              5
Critical conditions for the taxonomy

Consistent across the largest possible
  number of countries, covering as many
  specific cases as possible


Based on descriptive criteria, and not on
  some prescriptive model of pension
  systems.



                                             6
Key terms


Pension funds
Pension entities
Pension plans

                    7
                                                                                                                     Trust / Foundation            Securities
                                                                                           Pension entity
                                                                                                                  Special corporate entities       Mutual funds
                                                      Non-insured pension plan
                                                                                                                    Investment co. / Bank          Deposit
                     With irrevocable                                                     Separate Accounts
                            right                                                                                 Pension fund managing co.        Insurance
                                                         Insured pension plan
                                                                                                                                                   policies
                                                                                          AUTONOMOUS PENSION FUND

                                                         YES

                                          Legally
                  Occupational          segregated ?                                                                 by type of pension
                                                                                                                           funds
                                                          NO
    Funded plan



                                        Without identification     With identification        Without
                                        of collateralisation       of collateralisation       irrevocable right
 Private system
                                                          NON-AUTONOMOUS PENSION FUND

 Public system
                                                                                                                                                   Securities
                                                                                                                     Trust / Foundation
                                                                                           Pension entity                                          Mutual funds
                                                                                                                  Special corporate entities
                                                      Non-insured pension plan                                                                     Deposit
                                                                                                                    Investment co. / Bank
                                                                                          Separate Accounts                                        Insurance
                    Personal                                                                                      Pension fund managing co.        policies
                                                         Insured pension plan
      Unfunded
      plan

                        PAYG
                                                                                                                                               8
Source: OECD.
           ...and within the former...


                                                    Trust / Foundation
                            Pension entity                                    Securities
                                                 Special corporate entities
                                                                              Mutual funds
Non-insured pension plan
                                                   Investment co. / Bank      Deposit
                           Separate Accounts
                                                 Pension fund managing co.    Insurance
  Insured pension plan                                                        policies



                                               AUTONOMOUS PENSION FUND




                                                                                  9
Existing administrative sourced
data set

The Eurostat statistics on Autonomous
 pension funds cover many variables


The OECD Institutional Investors database
 covers pension funds assets only




                                             10
Extract from Institutional Investors, Statistical Yearbook, 2001 ed.
                                                                        FINANCIAL ASSETS OF PENSION FUNDS
               AS A PERCENTAGE OF GDP
                     1992      1993      1994        1995        1996          1997        1998          1999 2000p
Australia             21.3     27.3      27.0        41.5        46.1          45.8        54.3          62.1        61.7
Austria        ..               0.6       0.7         1.0         1.2           1.7         2.6           3.4         3.9
Belgium                2.5      2.9       2.9         3.7         4.1           4.8         5.9           5.7 ..
Canada                31.3     34.0      35.9        38.6        41.4          43.0        46.1          48.0        44.3
Czech Republic ..          ..             0.2         1.0         3.0           2.4         3.5           3.7         2.3
Denmark               14.4     16.8      17.2        17.8        17.8          18.8        22.4          22.7
Finland        ..          ..       ..          ..          ..          ..            ..           ..         ..
France         ..          ..       ..          ..          ..          ..            ..           ..         ..
Germany                2.9      2.5       2.7         2.7         2.8           2.9          3.3          3.0         3.3
Greece         ..          ..       ..          ..          ..        ..              ..           ..         ..
Hungary        ..          ..       ..                0.1         0.3           0.6          1.3          2.0         3.1
Iceland               40.8     46.8      55.0        57.6        62.6          66.5         71.6         83.3        78.4
Italy                  3.1      3.4       3.5         3.6         3.2           3.0          3.1          4.2         4.5
Japan                 12.7     13.6      14.3        14.2        14.4          14.9         19.4         20.8
Korea                  3.2      3.4       3.3         3.1         3.1           2.0          4.5          3.3         2.5
Luxembourg            17.2     17.2      18.7        18.2        18.2 ..              ..           ..         ..
Mexico         ..          ..       ..          ..          ..                  0.2          1.4          2.4         3.0
Netherlands           76.0     83.1      87.0        88.4        93.4         101.2         87.2        112.6       115.2
Norway                 4.5      5.5       6.4         6.4         6.5           6.6          7.2          7.4 ..
Poland                 0.0      0.0       0.0         0.0         0.0 ..              ..           ..         ..
Portugal               2.9      5.0       6.6         8.5         9.4          10.3         11.8         10.9        11.8
Spain          ..          ..       ..          ..          ..        ..              ..           ..         ..
Sweden                 1.6      2.0       2.2         2.4         2.4           2.7          3.0          2.9         3.0
Switzerland           59.6 ..            71.2 ..                 73.5 ..                   101.5 ..           ..
Turkey         ..          ..       ..        ..            ..        ..              ..         ..           ..
United Kingdom        52.7     72.5      64.8        68.6        77.4          83.1         83.7         85.1 ..
United States         50.0     52.9      52.8        60.1        64.2          71.1         76.0         74.7        69.9

                                                                                                             11
Issues to be addressed...

Maximise data quality
  – Comparability
  – Metadata
Maximise efficiency of data collection
  – collector
  – Supplier
How to improve the global efficiency?
                                          12
Some discrepancies...
    Source             OECD               Eurostat             EFRP
 OECD countries                          USD billion
Australia                     253.3 ..                    ..
Austria                         7.1                 6.6                25.6
Belgium                        14.4                13.0                15.8
Canada                        310.3 ..                    ..
Czech Republic                  2.0 ..                    ..
Denmark                        40.1                 5.7                42.6
Finland           ..                                4.2                13.0
France            ..                ..                                 86.1
Germany                        63.3 ..                                338.1
Greece            ..                ..                                  5.4
Hungary                         1.0 ..                    ..
Iceland                         7.2 ..                                  7.2
Ireland           ..                ..                                 51.7
Italy                          33.2                20.9                28.0
Japan                         937.1 ..                    ..
Korea                          13.5 ..                    ..
Luxembourg        ..                c                                   0.1
Mexico                         11.4 ..                    ..
Netherlands                   448.5               460.3               454.7
Norway                         11.3 ..                                  7.8
Poland            ..                ..                    ..
Portugal                       12.4                12.9                13.2
Spain                          12.8                29.1                22.9
Sweden            ..                                7.0               129.1
Switzerland       ..                ..                                319.8
Turkey            ..                ..                    ..
United Kingdom            1226.3                 1154.0           1332.9      13
United States             6900.8 ..                       ..
 Use administrative and/or survey data
 or a combination of both?

Progress achieved in the coverage of financial
  administrative data


Some limitations in both sources
What could be the trade-off ?

                                                  14
Progress achieved...
In the mid 90s’, one of the difficulties for compiling
  pension funds in the Financial Accounts was to
  distinguish private from public pension plans
Currently, private pension entities are widely covered
  in the Financial Accounts, in the United States, Japan
  and the United Kingdom,
But many countries do not provide the distinction
  between Pension and Insurance entity



                                                   15
Common limitations...
Certain business transactions are not included or
 captured
Lack of detailed information not collected through
 administrative data
Requiring separate financial reporting for
 businesses in multiple industries or several locations
Timeliness and frequency with which data is
 collected is not always consistent with statistical
 requirements
Classifications, measures and scope may not meet
 standard OECD requirements
                                                  16
 Trade-off...


Based administrative data for the very aggregates
  measures, e.g. total assets


Survey data in order to desegregate and to come
  with more detailed data




                                              17
US Assets Held in Defined Contribution Vs. Benefit plans

                      Defined Benefit                       Defined Contribution
   USD billions                                                                    USD billions

  3000.0                                                                                     3000.0


  2500.0                                                                                     2500.0


  2000.0                                                                                     2000.0


  1500.0                                                                                     1500.0


  1000.0                                                                                     1000.0


   500.0                                                                                     500.0


     0.0                                                                                     0.0
           1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000


                                                                                                   18
       Pension fund assets held by
       institutional investors in Denmark
                     Insured pension funds
                     Pension entities
                     Banks
                     ATP (Labour Market Supplementary Pension Fund)
USD billion          Employees’ Capital Pension Fund
 200


 150


 100


  50


   0
   1991       1992   1993    1994     1995    1996    1997    1998    1999   2000

                                                                             19
Measures identified for international
cross-country comparison

Stock measures
Flows measures



                                   20

								
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