OECD WORK ON PENSION STATISTICS On-going data collection Working Party on Financial Statistics Paris, 6-7 October 2003 Organisation for Economic Co-operation

OECD OECD WORK ON PENSION STATISTICSWORK ON PENSION STATISTICS

On-going data collectionOn-going data collection

Working Party on Financial StatisticsWorking Party on Financial Statistics

Paris, 6-7 October 2003Paris, 6-7 October 2003

Organisation for Economic Co-operation and DevelopmentOrganisation for Economic Co-operation and Development

Jean-Marc SalouJean-Marc Salou

OECD Financial Markets DivisionOECD Financial Markets Division

Why pension funds statistics?Why pension funds statistics?

Pension funds are the main source of long-term savings;Pension funds are the main source of long-term savings;

Broad interaction with capital markets;Broad interaction with capital markets;

Use in macro-economic, financial and social policy;Use in macro-economic, financial and social policy;

OECD activities through the Working Party on Private Pension OECD activities through the Working Party on Private Pension

and through the International Network of Pension Regulators and through the International Network of Pension Regulators

and Supervisors (INPRS).and Supervisors (INPRS).

Goal of the OECD pension projectGoal of the OECD pension project

The Global Pension Statistics Project would The Global Pension Statistics Project would

develop a develop a system of international pension system of international pension

statistics, collected from primary sources, using statistics, collected from primary sources, using

coherent statistical concepts, definitions and coherent statistical concepts, definitions and

methodologies.methodologies.

A tool for measuring private pensions A tool for measuring private pensions

with an international perspectivewith an international perspective

Get data internationally comparable;Get data internationally comparable;

Provide data together with information on their Provide data together with information on their

coverage (metadata);coverage (metadata);

Supply up-to date data.Supply up-to date data.

4

Practical objectivesPractical objectives

Evaluate pension data currently available and its related Evaluate pension data currently available and its related

metadata;metadata;

Improve the harmonisation of concepts, definitions, and Improve the harmonisation of concepts, definitions, and

compliance in line with the taxonomy developed through compliance in line with the taxonomy developed through

the OECD Working Party on Private Pensions;the OECD Working Party on Private Pensions;

Collect and analyse the data.Collect and analyse the data.

““Autonomous” pension funds:Autonomous” pension funds:

-- Funds without legal personality (Portugal, Funds without legal personality (Portugal,

Spain, Italy -fondi aperti-, Poland)Spain, Italy -fondi aperti-, Poland)

-- Funds with legal personality (rest of countries)Funds with legal personality (rest of countries)

The governing body:The governing body:

-- Trustee (UK, Ireland, Australia, Canada)Trustee (UK, Ireland, Australia, Canada)

-- Board (foundations - Holland, Switzerland; Board (foundations - Holland, Switzerland;

mutuals - Germany, Austria, Hungary)mutuals - Germany, Austria, Hungary)

-- Fiduciary (USA)Fiduciary (USA)

-- Pension fund administrator (Portugal, Spain, Pension fund administrator (Portugal, Spain,

Italy - fondi aperti)Italy - fondi aperti)

Pension fund taxonomyPension fund taxonomy

The new OECD definition: private plansThe new OECD definition: private plans

In all countries, but In all countries, but tax advantages are tax advantages are not universal.not universal.

a) DB: Germany, Japana) DB: Germany, Japan

b) DC/DB: UK, USA, Canada b) DC/DB: UK, USA, Canada c) DC: Italy, Spainc) DC: Italy, Spain

VoluntaryVoluntary

a) Sweden (mutual a) Sweden (mutual funds)funds)

b) Mexico, Hungary, b) Mexico, Hungary, Poland (pension Poland (pension funds)funds)

a) DB: Finland, Holand, a) DB: Finland, Holand, Australia, Switzerland Australia, Switzerland

b) DC: Australia, Denmark, b) DC: Australia, Denmark, IcelandIceland

MandatoryMandatory

Personal plansPersonal plans

(employment link not (employment link not needed)needed)

Occupational plansOccupational plans

(employment link as a (employment link as a condition of membership)condition of membership)

Source: OECD.

Occupational

Personal

Without identification of collateralisation

With identification of collateralisation

Funded plan

Trust / Foundation

Special corporate entities

Private system

Public system

With irrevocable right

Without irrevocable right

NON-AUTONOMOUS PENSION FUND

Legallysegregated ?

Unfunded plan

PAYG

YES

NO

Pension entity

Insured pension plan

Separate AccountsPension fund managing co.

Investment co. / BankNon-insured pension plan

Trust / Foundation

Special corporate entitiesPension entity

Insured pension plan

Separate AccountsPension fund managing co.

Investment co. / BankNon-insured pension plan

Securities

Mutual funds

Deposit

Insurance policies

AUTONOMOUS PENSION FUND

Securities

Mutual funds

Deposit

Scope of the projectScope of the projectA BY PENSION FUND TYPE

1 Total autonomous [1.1+1.2]

1.1 Pension entity

1.2 Separate account

2. Total non-autonomous

3. Total insured

Total all funds [1+2+3]

A BY PENSION FUND TYPE

1 Total autonomous [1.1+1.2]

1.1 Pension entity

1.2 Separate account

2. Total non-autonomous

3. Total insured

Total all funds [1+2+3]

B BY PENSION PLAN TYPE

1 Total occupational [1.1+1.2]

1.1 Mandatory [1.1.1+1.1.2]

1.1.1 Defined contribution

1.1.2 Defined benefit

1.2 Voluntary [1.2.1+1.2.2]



2 Total personal [2.1+2.2]

2.1 Mandatory [2.1.1+2.1.2]



2.2 Voluntary [2.2.1+2.2.2]



Total all plans [1+2]

B BY PENSION PLAN TYPE

1 Total occupational [1.1+1.2]

1.1 Mandatory [1.1.1+1.1.2]



1.2 Voluntary [1.2.1+1.2.2]



2 Total personal [2.1+2.2]

2.1 Mandatory [2.1.1+2.1.2]



2.2 Voluntary [2.2.1+2.2.2]



Total all plans [1+2]

Variables Variables

AssetsAssets

LiabilitiesLiabilities

IncomeIncome

ExpenditureExpenditure

MembershipMembership

Where Are We?Where Are We?

A common vocabulary: the Taxonomy and Glossary of pension terms;

Design of a a statistical questionnaire based on a data availability

exercise;

Approval of the questionnaire by the Task Force on Pension Statistics

and the Working Party on Private Pensions;

First round of the on-going data collection (2001 and 2002 data).

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Moving forward Moving forward

Preliminary results will be presented for the next Working

Party on Private Pensions meeting in November;

Taxonomy and glossary to be revised;

Revisiting the methodology on the basis of the first round of

data collection;

Presentation of a set of financial indicators in June 2004.

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Issues to be address Issues to be address

Coherence with other datasets,

- Autonomous vs. non-autonomous pension funds,

- Funded vs. unfunded pension plans;

Coherence within the SNA framework (Taxonomy and Glossary);

Enhance data completeness;

Up-to-date data through the delivery of preliminary or estimates.

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2001 Pension funds’ 2001 Pension funds’ assets as % of GDP in Selected assets as % of GDP in Selected OECD countries OECD countries

(private occupational plans)(private occupational plans)

0%

20%

40%

60%

80%

100%

120%

140%

BELGIUM

CANADA

FRANCE

GERMANY

ITALY

JAPAN

NETHERLANDS

SWEDEN

SWIT

ZERLA

ND

UNITED K

INGDOM

UNITED S

TATES

Sources: National sources, Eurostat and EFRP. 2001 preliminary data was compiled by the OECD Financial Markets Division, within the framework of its on-going Pension Statistics Project. Last update: 25/09/2003

2002 ASSETS’ BREAKDOWN 2002 ASSETS’ BREAKDOWN BY TYPE OF INVESTMENT PRODUCTSBY TYPE OF INVESTMENT PRODUCTS

Bills and bonds issued by public administration,

14%

Shares, 15%

Other, 84%

Mutual funds (CIS), 56%

Land and Buildings, 1%

Corporate bonds, 3%

Other investments, 4%

Cash and Deposits, 4%

Unallocated insurance

contracts, 3%

Shares, 17%

Corporate bonds, 24%

Other, 65%


25%

Loans, 0%




Other investments, 2%

BELGIUM

PORTUGAL

Source: OECD Global Pension Statistics Database.Source: OECD Global Pension Statistics Database.

Shares, 16%

Loans, 26%

Other, 83%


41%




GERMANY

UNITED STATES

Mutual funds (CIS), 8.73%

Shares, 24.91%

Other, 82.58%

Other investments,

48.94%

Land and Buildings, 0.87%


4.05%

Corporate bonds, 4.34%

Unallocated insurance

contracts, 4.94%

Cash and Deposits, 3.04%


UNITED STATES - ASSETS’ BREAKDOWN UNITED STATES - ASSETS’ BREAKDOWN BY TYPE OF INVESTMENT PRODUCTS BY TYPE OF INVESTMENT PRODUCTS

2001 vs. 2002 2001 vs. 2002 (As a % of total)(As a % of total)

INVESTMENT PRODUCTS 2001 2002

Loans 0.17% 0.22%

Land and Buildings 0.87% 1.02%

Cash and Deposits 3.04% 3.43%

Bills and bonds issued by public administration 4.05% 4.59%

Corporate bonds 4.34% 4.93%

Unallocated insurance contracts 4.94% 5.38%

Mutual funds (CIS) 8.73% 7.92%

Shares 24.91% 21.04%

Other investments 48.94% 51.48%


Documents

OECD WORK ON PENSION STATISTICS On-going data collection Working Party on Financial Statistics Paris, 6-7 October 2003 Organisation for Economic Co-operation