Public Pension Fund Management : Governance, Accountability, and Investment Policies.

Intro -- Contents -- Foreword -- Contributors -- Introduction -- Chapter 1 -- A Framework for Public Pension Fund Management -- The Growth of Public Sector Pension Funds -- Governance of Public Pension Schemes -- Public Sector Governance: General Issues -- Laying a Foundation for Public Pension Scheme Governance -- A Governance Checklist -- Accountability of Public Sector Pension Schemes -- Laying a Foundation for Public Pension Scheme Accountability -- An Accountability Checklist -- Investment Policies -- Laying a Foundation for Public Pension Scheme Investment Policy and Processes -- An Investment Policy Checklist -- Conclusion -- References -- Annex 1.A: ABP Investment Policy Statement -- Introduction -- I. The Investment process -- II. Investment plans -- III. Implementation of the investment plan -- IV. Social responsibility -- V. The role of the shareholder ("corporate governance") -- VI. Amendment of this Code -- Annex 1.B: Index of Governance Framework Document- Australian Prudential Regulation Authority (APRA) -- 1. Foundations -- 2. Key Roles and Relationships -- 3. Internal Accountability Framework -- 4. External Accountability Framework -- 5. Consequences of Failure to Meet Responsibilities -- Appendix A-Statutory Responsibilities of Board Members -- Appendix B-Matrix of Delegations -- Notes -- Chapter 2 -- Governance of Public Pension Funds:Lessons from Corporate Governance and International Evidence -- Agency Theory and Corporate Governance -- Agency Problems: Separation of Ownership and Control and Moral Hazard Problems -- Resolving Problems -- Agency Problems in Public Pension Plans -- Who Are Public Pension Fund Stakeholders? -- Potential Agency Problems -- Political Involvement: Government Restrictions and Social Mandates -- The Effects on Fund Performance -- Solving Agency Problems -- Separation of Ownership and Control.

Ownership and Control in Private Pensions -- Ownership and Control in Public Pension Funds -- Implications for Governance -- External Controls -- Implications for the Governing Body of Public Pension Plans -- Board Composition -- Nomination and Termination -- Accountability -- Performance Measures -- Roles of the Board -- Standards of Behavior -- Information and Transparency -- Conclusion -- References -- Notes -- Chapter 3 -- Transparency and Accountability of Public Pension Funds -- Relevance -- Key Components -- The Key Components -- Focus of Liability -- Good Governance of the Governing Body -- Effective Accounts and Audit -- Effective Custody -- Public Transparency and Reporting -- Independent Oversight -- Good Models: What They Do -- Good Models -- Canada Pension Plan -- Norwegian Government Petroleum Fund -- California Public Employees' Retirement System (CalPERS) -- Irish National Pensions Reserve Fund -- Models with More to Do -- Southeast Asia Region -- Central Provident Fund in Singapore -- Japan -- Conclusion -- Annex 3.A: The Norwegian Petroleum Fund-Key Figures, 2002 -- References -- Notes -- Chapter 4 -- The Canadian Experience on Governance, Accountabilityand Investment -- Background -- Governance -- Integrity -- Investment Policy -- Accountability -- Concluding Remarks -- Notes -- Chapter 5 -- Public Pension Funds Accountability: The Case of Ireland -- Background to the Irish Fund -- Present Pension Arrangements -- Recommendation for Fund -- Fund Establishment -- National Pensions Reserve Fund Act, 2000 -- Progress of the Fund since Establishment -- Objective and Mission Statement -- Decision on Investment Strategy and Portfolio Construction -- Appointment of Service Providers -- Decision on Market Entry Strategy -- Performance -- Accountability: Requirements and Practice -- Responsible Party.

Accountability Requirements in the Legislation -- Accounts and Audits -- Report and Information to the Minister -- Appearance before the Committee of Public Accounts -- Other Requirements for Accountability -- Other Ways of Accounting to the Public -- Meeting the Requirements in Practice -- Public Reaction -- Conclusion -- Annex 5.A: Portfolio Construction -- Annex 5.B: Market Entry Strategy-"Averaging In" -- Annex 5.C: Progress -- Annex 5.D: The National Pensions Reserve Fund-Section 12 Guidelines -- Annex 5.E: National Pensions Reserve Act, 2000 -- Part 4: Accountability and Reporting -- Notes -- Chapter 6 -- Key Differences in Public Pension Fund Management between Ireland and Poland -- Background -- Funds' Main Objectives and Funding -- Governance -- Investment Policy -- Public Awareness -- Concluding Remarks -- Notes -- Chapter 7 -- Governance of Public Pension Funds: New Zealand Superannuation Fund -- Context -- New Zealand Superannuation Policy -- Implications for Crown Finances -- Policy Objective -- Smoothing Crown Finances -- Other Issues -- Features of Policy Design -- "A clearly defined portfolio of Crown financial resources…" -- "… managed by an independent governing body…" -- "…with explicit commercial investment objectives…" -- "…and clear accountability." -- Implementation Experience -- Development and Passage of Legislation -- Board Appointment -- Fund Establishment -- Capital Contributions -- Other Crown Financial Portfolios -- Circumstances of the Main Entities -- Conclusion -- References -- Notes -- Chapter 8 -- Investment Policies, Processes and Problems in U.S. Public Sector Pension Plans: Some Observations and Solutions from a Practitioner -- Part I: Background Information -- Distinguishing Public Sector Pension Plans from Other Plans -- Importance of U.S. Public Sector Pension Plans.

Part II: Toward Better-Informed Investment Policy Setting -- Investment Policies Involve Two Big Risk-Return Decisions -- Generic AA Decision Process -- Uncertain Parameters and the "Perils of Optimization" -- Differential Levels of Parametric Uncertainty -- Two-stage AA Recognizes Differential Parametric Uncertainty -- Clarifying Expected Impact on Fund Performance -- End Result: Higher-Confidence Policy Portfolios -- Part III: Poor Governance Structures and Procedures Impede Successful Implementation of Investment Policies -- Poor Fund Governance: Costs, Descriptions, and Prescriptions -- Seven Hurdles to Better Fund Governance -- Four Organizational Hurdles -- Three Behavioral Hurdles -- Part IV: Trustee-Focused Report for Measuring and Monitoring Fund Performance -- Conclusions -- References -- Notes -- Chapter 9 -- The Norwegian Petroleum Fund -- Background -- Governance -- Accountability -- Investment Policy -- Active Management -- Concluding Remarks -- Notes -- Chapter 10 -- Governance and Investment of Provident and Pension Funds: The Cases of Singapore and India -- The Case of Singapore -- What Needs To Be Done? -- The Case of India -- Governance and Investment Policies and Issues -- EPFO Investment Policies and Performance -- EPFO's Rate of Return -- Governance Issues -- Civil Service Pensions -- Conclusion -- References -- Notes -- Chapter 11 -- Supervision of a Public Pension Fund: Experience and Challenges in Kenya -- Background -- The Retirement Benefit Act -- The National Social Security Fund -- Main Issues -- Diagnosis -- Addressing the Issues -- Implementation Issues -- Lessons from the Kenyan Experience -- Reform Agenda -- Tables -- Table 1.1: Implicit Public Pension Debt of Low- and Middle-Income Countries -- Table 1.2: Regional Distribution of Public Pension Funds -- Table 2.1: Agency Relationship Characteristics.

Table 2.2: Allocation of Assets for 26 Pension Funds (% of Portfolio) -- Table 2.3: Board Composition (fraction of board) -- Table 5.1: Benchmarks -- Table 7.1: Timeline of Events -- Table 7.2: Crown Financial Assets and Liabilities (NZ millions) -- Table 8.1: Sources of Assets for U.S. Retirement System, 2001 -- Table 8.2: Ten Largest U.S. Employee Pension Funds, 2001 (as of September 30, 2001) -- Table 10.1: CPF Contribution Rates (applicable as of January 1, 2004) -- Table 10.2: Various Schemes Under Singapore's CPF System -- Table 10.3: Sensitivity of Results to Potential Policy Changes -- Table 10.4a: India-Investment Guidelines of the EPFO -- Table 10.4b: India-Investment Guidelines of the IRDA -- Table 10.5: Rates of Contribution for EPFO Schemes, 2001 -- Figures -- Figure 1.1: Implicit Public Pension Debt in Selected OECD Countries, 1994 -- Figure 2.1: Investment Restrictions (percentage of funds surveyed) -- Figure 2.2: Investment Mandates (percentage of funds surveyed) -- Figure 7.1: Bounds for Indexation of the NZS Rate -- Figure 7.2: New Zealand Population Age Structure -- Figure 7.3: Total Fertility Rate -- Figure 7.4: Years of Eligibility for New Zealand Superannuation -- Figure 7.5: New Zealand Superannuation as a Percentage of GDP -- Figure 7.6: Smoothing the Cost of New Zealand Superannuation -- Figure 8.1: Generic Asset Allocation Decision Process -- Figure 8.2: Generic Two-Stage Asset Allocation Decision Process -- Figure 8.3: Decide Asset Allocation in Two Stages -- Figure 8.4: Two-Stage Asset Allocation Clarifies Project Impact of Perormance Enhancing Strategies -- Figure 8.5: Three-Panel Trustee-Friendly Performance Report -- Figure 9.1: Production of Petroleum, Mill Sm3 Oil Equivalent -- Figure 9.2: Growth of the Petroleum Fund, 1996-2002.

Figure 9.3: Net Cash Flow from the Petroleum Sector and Pension Expenditures (in percent of GDP).

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.