Pension fund risk management [32]

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Bullet points include: Country Legal status Benefits capped Delivery mechanism and management Paid for by* UK (PPF) Statutory body (not insurer) Yes (some) Own portfolio Scheme levies Germany (PSVaG) Mutual insurer, g’teed by KfW Yes Annuities from life insurer consortium Compulsory sponsor premiums Sweden (PRIP) Mutual insurer No Own portfolio plus reinsurance Compulsory sponsor premiums with selective underwriting** Switzerland (LOB Guarantee Fund) Govt body Yes Annuities from insurers Covers mainly DC schemes Finland (Garantia) Non-life insurer No Pension loan guarantees Sponsors (as loan guarantees are treated as company debt) USA (PBGC) Federal Agency (under ERISA) Yes Own portfolio Sponsors, at rates set by US Congress * Most arrangements have some ability to increase levies/premiums retroactively ** In Sweden insurance is mandatory if a sponsor is to provide a DB scheme. The insurance cover comes up for renewal every 3 years when PRIP can require employers to increase funding, cease accrual or wind-up scheme within 5 years

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