The OECD Guidelines for Pension Fund Governance were released on July 7, 2009.
The document describes the fundamental requirements of pension fund governance, with an emphasis on risk management. The key requirements set out in the Guidelines are the ultimate responsibility of the fund’s governing body for all strategic decisions, and that body is accountable to beneficiaries and regulatory authorities for its actions, with an emphasis on managing the risks posed by administering the fund. The document also underscores the need for clear documentation and communication of the governance structure and main objectives of the fund to all interested parties.
Requirements for the public disclosure by pension plans of whether, and if so how, environmental, social, and governance considerations are taken into account in the investment policy are specifically noted in the Annotations to the Guidelines. Currently, nine OECD jurisdictions mandate such disclosure for pension funds.