The Integrity Sub-Index 2010

The integrity sub-index is determined by considering three broad areas of the private sector pension system, namely: regulation and governance; protection for members; and costs.

As this sub-index is only concerned with the private sector pension plans (i.e. the second and third pillars of the World Bank model), it has a more restricted scope than the previous two sub-indices.

The private sector pillar is, however, important because without it the government becomes the only provider, which is not a desirable or sustainable long-term outcome. A sound and well regulated private sector pension system, which has the confidence of the community, represents an important component of most countries’ retirement income systems.

The country with the highest value for the integrity sub-index is the Netherlands (91.4), with the lowest value being for China (43.4). As noted above, this sub-index covers three broad areas affecting private sector pension plans and the better scores were achieved by countries with well developed private pension industries.

In each of the three broad areas, several questions have been asked to ascertain the requirements and situations that apply to private sector pension plans in each country.

Full details of the values in respect of each indicator in the integrity subindex are shown in Attachment 3 of the Index.

Download “The Integrity Sub-Index” Section of the Index.