Pension fund management, Financial Management

Assignment Help:

Pension fund management

Pension fund systems ought to be carefully designed and supervised to make sure that their purposes are met, the economic consequences are appropriate and that the individual members are given some basic protection. Even when the retirement provision is "opted out" from the hands of the state and is operated by private entities, some sort of supervision is still needed.

Pension plans are complex businesses created for the benefit of pension plan stakeholders. These stakeholders typically include current and future pensioners and the "owners" of the pension plan sponsor (i.e., either shareholders or taxpayers). Pension funds are very large funds. Effective management of these funds is a very important goal not only for the contributors, but also for the economy. This is because they represent a large part of the collective household savings. If these funds are not managed effectively, it may lead to disasters of huge magnitudes. This can slowdown Gross Domestic Product of the country and may as well cause grave political disturbances. In any pension investment management system, the Board of Trustees plays an important role. The fundamental responsibility of a trustee is to serve fairly all the different classes of beneficiaries. The trustees' duties relate to the provisions of the trust and its beneficiaries.

The trustees need to ensure that: the funds are safe; they get a good investment return; the scheme is properly administered, and they act in the members' interests. Separate issues such as negotiations about pension benefits between the employer and workforce representatives are not the business of the trustees or trustee meetings, even though some trustees may be involved in different roles in these issues. Trustees are bound to seek expert advice on matters where they need help mainly with regard to investment. They need to appoint an investment adviser and seek his advice at the time of investment.

 


Related Discussions:- Pension fund management

Explain learning outcomes of financial management, Explain learning outcome...

Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Explain the benefits of delegation from point of view of yt, YT is the Fina...

YT is the Finance Manager of SBM Magazine Publishing Company. He has recently had his appraisal and was expecting that he would get a excellent review, as he felt that he had met a

Corporate bonds, Corporate bonds are debt securities issued by privat...

Corporate bonds are debt securities issued by private and public corporations. These bonds are issued to meet specific requirements like building a new plant, pur

Determine the scope of financial management, Scope of Financial Management ...

Scope of Financial Management The approach to scope and functions of financial management is divided, forpurposes of exposition, into two broad categories: (a) Traditional A

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM, 6 KEY STAGES ...

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM

Evaluate certainty equivalent coefficient, Q. Evaluate Certainty Equivalent...

Q. Evaluate Certainty Equivalent Coefficient? Illustration: - Presume the risky cash flow is Rs. 200000 and the riskless cash flow is Rs. 140000. The Certainty Equivalent Co

Benefits of securitization, Securitization has attracted a widespread...

Securitization has attracted a widespread application of the technique to residential mortgage loan, the easiest class of a financial asset to securitize, and to

Analysis of financial statement, complete the balance sheet and sales infor...

complete the balance sheet and sales information using the following data: debt to assets ratio 50% current ratio 1.8x total assets turnover 1.5x day sales outstanding 36.5 days (c

What is a treasury bill? how risky is it?, What is a Treasury bill? How ris...

What is a Treasury bill? How risky is it? Treasury bills are the short-term debt instruments issued by the U.S. Treasury that are sell at a discounted and pay face value at mat

Leverage, what is financial leverage

what is financial leverage

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd