SUMMARY RECORD OF THE OECD/IOPS GLOBAL FORUM ON PRIVATE PENSIONS
30-31 October 2008, Mombasa, Kenya
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SUMMARY RECORD OF THE OECD/IOPS GLOBAL FORUM ON PRIVATE PENSIONS
30-31 October 2008, Mombasa, Kenya
1. General Information
1.
The 2008 global forum on private pensions was organised by the OECD in cooperation with the
IOPS (International Organisation of Pensions Supervisors). As in previous years, the global forum was
held back to back with the annual meeting of IOPS itself. It was hosted by the Retirement Benefits
Authority of Kenya and sponsored by the Government of Japan.
2. Background
2.
As in previous years, the Forum attracted a large number and wide range of participants, with
strong representation from the host country, region and globally.
3.
The Forum was attended by over 150 delegates from over 35 countries (pension regulatory and
supervisory authorities, government representatives, industry representatives and private sector
participants). The Kenyan and regional representatives included the following:

Kenya authorities: Assistance Minister Finance Kenya, Chairman and Board of Retirement
Benefits Authority, Head of the NSSF Kenya, Head of the Capital Markets Authority Kenya.

Regional representation: Botswana, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South
Africa, Swaziland, Uganda, East African Community
3. Agenda Items and Points for Discussion
4.
The Forum was opened with a speech on ‘The Role of Private Pension Systems in Developing
Countries’, delivered by Hon. Dr. Oburu Odinga, Assistant Minister for Finance, Kenya, who also stayed
for the first session discussing potential reforms for the pension system in Kenya.
5.
The conference was then divided into 5 sessions – with supporting papers produced for each
(which were circulated to participants before the event, were made available on the OECD website and
which will be produced in a publication).
6.
OECD work and good practices were presented, particularly in relation to session three and five
(Good Practices for Financial Education relating to Pensions, Guidelines on Pension Fund Asset
Management, OECD Principles for Private Sector Participation in Infrastructure).
7.
There was good discussion and participation from conference delegates, particularly in session
three and four.
Session 1: Pension Industry Development in Kenya

A paper discussing potential reforms for the pension system in Kenya was presented by Mr.
Sundeep Raichura, Chairman, Actuarial Society of Kenya. Mr. Raichura praised previous pension
reforms, notably those putting in place a regulatory structure for occupational pensions and
strengthening the role of the Retirement Benefits Authority, and noted that this is a good time
launch the next stage of reform. He stressed that this needs to tackle outstanding challenges of
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pension coverage and adequacy (both of which are still low in Kenya) and should be on a systemwide basis, also dealing with the Public Sector Pension Scheme and National Social Security
Fund.

Discussants Edward Odundo, Chief Executive Officer, Retirement Benefits Authority, Kenya,
Albert Odero, Managing Trustee, National Social Security Fund, Kenya, and Lazarus Mwema,
Chairman, Association of Retirement Benefits Schemes, Kenya all went on to support the call for
a National Pensions Policy.
Session 2: Roundtable on Pension Developments in Africa

A panel made up of representatives of pension regulatory and supervisory authorities from
Botswana, Namibia, Nigeria, Malawi, Mauritius and South Africa discussed pension reform
initiatives in the region. Though instituting different systems (notably the experience of
introducing an individual account, defined contribution based system in Nigeria), and at different
levels of development (from the developed system in South Africa to the first steps to introduce
pensions in Malawi), shared trends were found in the countries’ experiences. Amongst other
issues, the cost and need for a universal pension was debated, the need for financial education
and pension information was raised, with coherent regulation and robust supervisory structures
also were called for.
Session 3: Financial Education Campaigns and Pension Reform

The need for financial education in relation to pensions was a constantly arising theme
throughout the conference. During this session representatives from Kenya, Ireland and Poland
presented their experiences and lessons learnt from their training and awareness campaigns. Mr.
Gerard Clarke, Assistant Head of Regulation at the Pensions Board of Ireland, explained how
their on-going national pensions awareness campaign derived its success from factors such as
balancing a long-term commitment to the project with keeping the message fresh and focusing
and adapting the campaign for specific target groups (women, rural workers or the young). Beata
Kalinowska, Director of the Pension Legal Supervision Department of the Polish Financial
Supervisory Authority, highlighted the campaign which took place on the introduction of the new
pension system in Poland in the last 1990s. The Polish experience stresses how it takes time for
knowledge to build up and therefore any campaign needs to start well ahead of the reform
process. Information (commercial, not objective) coming from the private sector also needs to be
managed carefully to avoid confusion and to help individuals make optimal decisions. Nzomo
Mutuku, Manager, Research and Development from the Retirement Benefits Authority of Kenya
stressed the positives from the RBA’s training programmes, not just for trustees (better
compliance and investment decisions) but also for the RBA - which receives useful feedback and
suggestions from these sessions which can drive policy change.
Session 4: Pension Fund Coverage and the Informal Sector

Yu-Wei Hu of the OECD presented a overview paper on the topic of how to extend pension
coverage to informal sector workers, stressing the need for some form of universal pension in
developing countries such as those in the African region, combined with other innovative
practices – from flexible terms of informal sector participants (as is the case in countries such as
Chile and Hong Kong, China), to utilizing non-pension infrastructure and participants (as is being
tried in India and Bangladesh). Gonzalo Reyes, Head of the Studies Division at the Pension
Supervisory Authority in Chile, explained how recent reforms of the pension system in his
country have been designed to extend coverage. His key message was that the reasons for non3
coverage first need to be established (e.g. self-employment for men, non-participation in the
labour force for women) before appropriate and targeted policy responses can be devised (e.g.
making contributions compulsory for self-employed workers, introducing a non-contributory,
solidarity pillar into the system). Rob Rusconi, and independent consultant from South Africa,
then presented a holistic view of the problem, stressing that policy makers first need to
understand the people they are trying to reach, before joining up a range of flexible, coordinated
solutions (from social security, to community efforts, to financial sector access in general).
Session 5: Pension Funds in Capital Market and Infrastructure Development

Juan Yermo from the OECD presented the Organisation’s work on pension fund investment,
before opening the session up to a discussion on pension fund investment in infrastructure. Mr.
Angel Melguizo from BBVA, explained the experiences with infrastructure projects across Latin
America, with the success of pension fund participation in such projects in Chile, vs. Peru and
Mexico, explained by factors such as supportive regulation, strong governance, well developed
financial instruments and a long-term commitment. Mr. Nick Rouse of the Africa Infrastructure
Fund then highlighted the opportunities for infrastructure development in Africa (which have so
far been concentrated in the telecom area, but with sectors such as energy and transport now
opening up). The discussants for the session, Mr. Japheth Katto and Ms. Stella Kilonzo, who
head the Capital Markets Authorities in Uganda and Kenya respectively, stressed not only the
need but also the appetite for such infrastructure projects in their countries, including the current
interest of governments in issuing infrastructure bonds.
4. Evaluation
8.
A wide range of OECD publications (working papers, guidelines, background on OECD pensions
and other work) were made available to conference participants and were eagerly taken up.
9.
A summary of responses to the questionnaire on the conference submitted by participants
follows:

Over 50 responses were received to the questionnaire (more than 1/3 of the participants).

The general assessment of the conference was excellent from 20% of respondents, very good
from 60% and good from 20%. Only 1 person rated the conference as satisfactory.

2/3 of responses rated the content of the conference as very good (again only 1 response of
satisfactory)

Almost ¾ of respondents rated the speakers as excellent or very good.

The discussion was rated somewhat lower (50% good, 1/3 very good).

The organisation of the event was rated no lower than good, and as very good or excellent by
85% of respondents

The background documents produced by the OECD were also generally rated as very good.

In terms of relevance of the topics covered to the policy debate in participants’ countries, 23%
responded as very significant, 61% as significant and 10% as moderate. Only 1 participant felt
the topics were unimportant and not of relevance to policy makers in their country.
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
32% of respondents indicated that the information, good practices etc. presented at the event
would be very significant for their future work, 42% significant and 26% moderately so.
5. Follow up
10.
The Global Forum generated strong interest in the OECD commissioned paper on the Kenyan
pension system (with the Assistant Finance Minister staying for the discussion on this paper).
11.
A continuation of dialogue was requested from the East African Community and SADC
(Southern African regional development group). Follow up will be undertaken with these African regional
groups to ensure wider circulation of OECD standards throughout the continent.
12.
Requests were received from regional participants for follow up as they reform their pension
systems. OECD private pension recommendations and guidelines were circulated to countries undergoing
pension reform to ensure OECD standards are implemented globally.
13.
A strong interest in the OECD financial education project was expressed from all participants.
Participants will be included in future communications on OECD financial education work.
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OECD/IOPS GLOBAL FORUM ON PRIVATE PENSIONS
30-31 October 2008
Mombasa, Kenya
AGENDA
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OECD/IOPS Meetings: 28-31 October 2008, Sarova Whitesands Hotel, Mombasa, Kenya
14.00-18.00 OECD/IOPS Global Pensions Forum
‘Pension Development in Africa – Opportunities and Challenges’
Opening Remarks
14.00-14.30 Ambrogio Rinaldi, Chairman OECD Working Party on Private Pensions
Ross Jones, Deputy Chairman of the Australian Prudential Regulatory Authority,
President, IOPS
Edward Odundo, Chief Executive Officer, Retirement Benefits Authority, Kenya
14.30-15.00
Opening Speech
‘The Role of Private Pension Systems in Developing Countries’
Acting Minister for Finance, Kenya (tbc)
Session 1: Pension Industry Development in Kenya
15.00-16.00 Moderator:
Tharcisse Kadede, Principal Economist (Fiscal and Monetary), East Africa Community
Speaker:
Sundeep Raichura, Chairman, the Actuarial Society of Kenya
Discussants:
Edward Odundo, Chief Executive Officer, Retirement Benefits Authority, Kenya
James Akoya, Managing Trustee, National Social Security Fund, Kenya
Lazarus Mwema, Chairman, Association of Retirement Benefits Schemes)
16.00 – 16.30 Coffee Break
Session 2: African Pensions Roundtable
16.30 – 18.00: Moderator:
Fiona Stewart, IOPS/OECD
Panel:
Muhammad Ahmad, Director General/Chief Executive Officer, National Pensions
Commission, Nigeria
Jurgen Boyd, Deputy Executive Officer, Retirement Funds, Financial Services Board,
South Africa
Tabrez Ahmad Lallmahomed, Senior Examiner, Financial Services Commission,
Mauritius
Sophia Amoo-Chimunda, Manager, Pension Funds, Namibian Financial Institutions
Authority
Patrick Mhango, Chief Examiner, Insurance and Pensions, Reserve Bank of Malawi
Elaina Gonsalves, Director of Insurance and Pension, Ministry of Finance, Botswana
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Evening Cocktail Reception – Hosted by National Social Security Fund, Kenya
Friday 31st October
Session 3: Financial Education Campaigns and Pension Reform
9.30-11.00 Moderator:
André Laboul, Head, OECD Financial Affairs Division, IOPS Secretary General
Speakers:
Irish Experience (National Awareness Campaign), Gerard Clarke, Assistant Head
of DB Supervision, The Pensions Board, Ireland
Kenya Experience (Training Trustees), Nzomo Mutuku, Manager, Research and
Development, RBA, Kenya
Polish Experience, Beata Kalinowska, Director of Pension Normative Supervision
Department, Poland
11.00 – 11.30 Coffee Break
Session 4: Pension Fund Coverage and the Informal Sector
11.30 -13.00
Moderator:
N.R.Rayalu, CEO of the NPS Trust under PFRDA, India
Speakers:
Yu-Wei Hu, OECD – OECD paper on coverage
Chile/ Latin American Experience: Gonzalo Reyes, Superintendencia de Administradoras
de Fondos de Pensiones, Chile
Rob Rusconi, Researcher, South Africa
13.00 -14.30
Lunch
Session 5: Pension Funds in Capital Market and Infrastructure Development
14.30 – 16.30 Moderator:
Juan Yermo, OECD
Speakers:
Infrastructure Investment in Latin America, Angel Melguizo, BBVA
Emerging Africa Infrastructure Fund, Nick Rouse, Managing Director of Frontier
Markets Fund Managers
Discussants:
Japheth Katto, Chief Executive, Capital Markets Authority, Uganda
Stella Kilonzo, Chief Executive, Capital Markets Authority, Kenya
Closing Remarks
16.30-16.45 Edward Odundo, Chief Executive Officer, Retirement Benefits Authority, Kenya
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Ross Jones, Deputy Chairman of the Australian Prudential Regulatory Authority,
President of IOPS
Ambrogio Rinaldi, Chairman OECD WPPP
André Laboul, Head, OECD Financial Affairs Division, IOPS Secretary General
Evening ”Kenya’s Diverse Heritage” Dinner at Fort Jesus, Mombasa – Hosted by Retirement
Benefits Authority, Kenya
Saturday 1st November
14.00 – 16.00 Optional Excursion for IOPS members to Haller Park and Nature Trail, Bamburi
Saturday November 1 – Sunday November 2, 2008 – Retirement Benefits Open Day
Exhibition (Aga Khan Hall Moi Avenue, Mombasa)
Saturday 1st November
9.00
11.00
Doors to Exhibition Open to the public
Official Opening Retirement Benefits Open Day – Joseph Kinyua, Permanent Secretary,
Ministry of Finance.
14.00 – 16.00 Stakeholder Presentations
17.00
Exhibition Closes for the Day
Sunday 2nd November
9.00
Doors to Exhibition Open to the public
10.00 –12.00 Stakeholder Presentations
17.00
Exhibition Closes for the Day
18.00
Closing Reception for Exhibitors
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