Upload
delano
View
43
Download
6
Embed Size (px)
DESCRIPTION
From the European Union through the Region to Hungary. Mihály Erdős Strategy Policy Director CEIOPS OPC Chair [email protected] Tel.: +36/1-489-9610. The Framework. EU Regulatory and Supervisory Framework Pension Market in the CEE Region Hungarian Fund Development. - PowerPoint PPT Presentation
Citation preview
Bucharest, 25.09.2006
From the European Union through the Region
to Hungary
Mihály ErdősStrategy Policy Director
CEIOPS OPC [email protected].: +36/1-489-9610
Bucharest, 25.09.2006
2
The Framework
• EU Regulatory and Supervisory Framework
• Pension Market in the CEE Region
• Hungarian Fund Development
Bucharest, 25.09.2006
3
Regulatory and Supervisory Framework
• Lamfalussy approach
• clear responsibilities
• cooperation• supervisors:
Level 3
Bucharest, 25.09.2006
4
CEIOPS and the OPC
• enhance the smooth implementation of the IORP Directive
• focus on cross-border issues
Bucharest, 25.09.2006
5
The EU Pension Regulation
• I. pillar: state, PAYG
• II. pillar: occupational plans
• III. pillar: personal plans
• I. pillar: new 1408 Regulation
• II. pillar: IORP and Portability Directive
• III. pillar: financial services directives
• But: PL, EE, HU
Bucharest, 25.09.2006
6
Different Approaches
World Bank
ILO OECD EFRP
I. pillar stateDBPAYG
basicfrom tax
state
PAYG
stateDBPAYG
II. pillar
personalmandatoryDC
statework-basedPAYG
occupational-mandatory-voluntary
workplace-mandatory
-voluntary
III. pillar
personalvoluntary
privatevoluntaryDC
personal-mandatory-voluntary
individual
Bucharest, 25.09.2006
7
EU Pension Fund MarketsPension Fund Asset, 2004
0
200000
400000
600000
800000
1000000
1200000
1400000
A B CZ DK FI F D H IRL I NL N PL P SW UK
mUSD
Source: OECD
Bucharest, 25.09.2006
8
World’s Largest Funds (2002, USDbn)
1. Japan Gov. Fund Japan 291
2. ABP NL 142
3. CALPERS USA 128.7
4. Local Gov. Officials Japan 101
5. Federal Thrift Savings Plan USA 96
6. New York State Common USA 95.9
7. Postal Savings Taiwan 95.8
8. California State Teachers USA 88.1
9. Florida State Board USA 78.7
10. National Pension Corp. Korea 77.3
Source: OECD
Bucharest, 25.09.2006
9
„Cross-border” Funds in the EU
Occupational Pension Funds, 2005
0
5000
10000
15000
20000
25000
30000
35000
Em
Source: IPE
Bucharest, 25.09.2006
10
A „Simplified” Model for Pan-European Funds
IORPDirective
RelevantS&L law
Pension scheme Pension scheme
Employer & employees
Employer & employees
IORP
Asset M. Admin.
IT ALM
Source: EU IMS DG
Bucharest, 25.09.2006
11
Personal Remarks
• implementation : the majority by June• pan-European funds: a pioneer needed• not classical solutions: asset pooling
(IRL, LU)• decline of traditional DB’s: funding
– increasing life expectancy, market valuation of liabilities
– poor equity markets, decline in interest rates
– labour market requirements• responses (OECD – NAPF)
– raising employer contribution– closing DB, opening DC for new
employees
Bucharest, 25.09.2006
12
The Regional Market
PL HU CZ SK EE1. Commercial Union OTP Winterthur Winterthur G Hansa P2. ING ING Ceske pojistovna Allianz G SEB P3. OFE PZU Aegon Komercni banky Allianz B Hansa B4. AIG Allianz Ceske sporitelny VUB G Sampo P5. Winterthur Winterthur ING ING G SEB C6. SAMPO Evgyuruk CSOB Winterthur B Hansa C7. Generali Aranykor Allianz VUB B ERGO P8. Bankowy GE CSOB Progres CSOB G LHV P9. OFE Skarbiec Uniqua Hornicky ING B Sampo B10. Allianz MKB Generali Aegon G ERGO C
Source: IPE
Bucharest, 25.09.2006
13
The Regional MarketLargest Funds in CEE
0
1000
2000
3000
4000
5000
6000
7000
mEUR
Source: IPE
Bucharest, 25.09.2006
14
The Regional MarketLargest Fund Groups in CEE
0
1000
2000
3000
4000
5000
6000
7000
ING Winterthur Allianz Aegon Generali
mEUR
Source: IPE
Bucharest, 25.09.2006
15
The Hungarian Market
• concentrated market
• similar to other financial markets
Number of Pension Funds
0
50
100
150
200
250
1998 1999 2000 2001 2002 2003 2004 2005
voluntary
mandatory
Bucharest, 25.09.2006
16
The Hungarian Market - Membership
Fund Members
0
500
1000
1500
2000
2500
3000
2000 2001 2002 2003 2004 2005
mandatoryvoluntary
New Members
0
200
400
600
800
1 000
1 200
1 400
1998 1999 2000 2001 2002 2003 2004 2005
th
mandatory
voluntary
Bucharest, 25.09.2006
17
The Hungarian Market - Assets
Asset of Pension Funds
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2000 2001 2002 2003 2004 2005
bnHUF
voluntarymandatory
Asset Allocation of Mandatory Funds
0%
20%
40%
60%
80%
100%
2002 2003 2004 2005
others
inv.funds
stocks
gov.bonds
corp.bonds
bank
Bucharest, 25.09.2006
18
Asset Management
• conservative investment policy– driven by members– disclosure requirements– lack of proper investment tools
• introduction of lifestyle investment– more stocks and foreign investment
• pension reform does not solve the problems of domestic capital market
Bucharest, 25.09.2006
19
Development of Voluntary Funds
• driving force: employer
• generous tax treatment– absolute or
relative
• selling: based on employer– mandatory -
members
Income Structure of Voluntary Funds
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1998 1999 2000 2001 2002 2003 2004 2005
Members+
Other
Spec.reserve
Employer
Members
Bucharest, 25.09.2006
20
Costs and Limits (2005)
Total charges on assets
0%
1%
1%
2%
2%
3%
3%
Bucharest, 25.09.2006
21
Instead of Conclusions• mandatory: escape from the
state – no marketing• market done from the beginning• no cross-selling data use• cost effective in comparison with
others• IT problems – collection system• two pillars together
Bucharest, 25.09.2006
22