Tuesday, June 20, 2006

IMF proposes reform to Swiss pensions system [CH]

In an additional Selected Issues paper to its recently published, periodic Article IV consultation, the IMF has analysed the Swiss occupational pensions system, comparing it to the Dutch and the British system.

While the analysis inevitably remains at a high level of abstraction (for instance, there is no mention of the fact that many pension plans that are nominally classified as DC need to be reclassified as DB to stay in line with IAS 19), the international comparison permits important conclusions concerning the fragmented supervisory structure in Switzerland and its outdated regulatory framework with a set of parameters that are defined without much recourse to actual market developments.

It will interesting to follow the IMF's more detailed exploration of these issues, announced for the Financial Sector Assessment Program update scheduled for the end of this year!

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