Brussels - The Global Federation of Insurance Associations (GFIA) provided comments on the Organisation for Economic Co-operation and Development's Core Principles for Private Pension Regulation.
GFIA said that policy measures that aim to protect members and beneficiaries should be proportionate and reflect the characteristics of pension products, as well as the specific choices that people in different jurisdictions must make.
GFIA raised concerns about the OECD recommendation that pension-fund assets should be legally separate from the assets of any other legal entity. GFIA said that management and pooling of pension assets can reduce costs, enhance yield and provide significant benefit security, whether those assets are held as deposits, insurance contracts, or under a trust.
Similarly, GFIA warned against the OECD recommendation that personal pension plans should, in general, be fully portable between providers,because to channel funding to long-term illiquid investments, insurers need to be able to generate long-term liabilities.