10 July 2006

OECD invites comment on occupational pensions

The OECD issued its draft guidelines on the funding of occupational pension schemes. The draft guidelines contain a series of recommendations on how the funding of occupational pension plans, and in particular defined benefit pension schemes, should be regulated.

Issues covered by the guidelines include the funding and valuation of pension plans and how the money paid by employees into their company pension scheme should be protected if their employer or the company that finances their pension plan goes bankrupt.

“Urgent regulatory action, including rules on funding and appropriate valuation of pension fund assets and liabilities, is needed to promote retirement income security for retirees, while avoiding undue costs on employers”, the OECD is said. The OECD draft Guidelines are the first such standard issued at the international level on pension funding regulations.

The deadline for comments is 15 September 2006.

Draft Guidelines

© OECD