07 November 2008

Pension Supervisors react to the global financial crisis

IOPS members expressed increasing concern regarding the financial crisis in global markets and the impact this has had on pension funding and adequacy.

Discussing the impact of the current financial crisis on their pension systems, member countries focused on the challenges and opportunities for pension development in Africa, addressing key issues such as how to raise pension coverage for informal sector workers and encourage pension funds to invest in infrastructure development.

Pension supervisors have made the following policy responses:

• The reporting required by funds to supervisors has been intensified;
• The frequency of ‘stress tests’ on pension assets has been increased;
• The monitoring of the financial system has been intensified, with pension and other supervisory authorities meeting more frequently with the Central Banks and Finance Ministries;
• Supervisors are working with industry to prevent pro-cyclical behavior and encourage pension funds to act in line with the long-term nature of their commitments;
• Supervisors are developing financial education and communication strategies.

Press release

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