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 the risk of the capital asset pricing model, Discuss risk from the ...

Discuss risk from the perspective of the Capital Asset Pricing Model (CAPM). The Capital Asset Pricing Model, or also known as CAPM, can be employed to calculate the suitable req

Hurdles in implementation of securitization, The following are considered t...

The following are considered the major stumbling blocks: The process becomes expensive because of the stamp duty payable. It also

Venture capitalist, Venture capitalist is an organization in the practice o...

Venture capitalist is an organization in the practice of providing capital to fledgling organization with high growth potential in exchange for equity stakes and/or management cont

Determine the name of some profit margin ratios, Determine the name of some...

Determine the name of some profit margin ratios Other profit margin ratios can also be computed: Gross profit/ turnover Profit after tax/ turnover Advertising co

Case study - japanese loans and forwards, Japanese banks borrow in yen and ...

Japanese banks borrow in yen and purchase spot dollars from their Western counterparties. Therefore the Western banks are left holding the yen for the time of the loan (three month

Plugging back of the future - important source of capital, Plugging back of...

Plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business. it is an internal financial of the business and it is more suitable for

Calculate the future value of annuity, 1.  An investor is thinking of inves...

1.  An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum. The investment that he is planning is for the higher education

Accounting to budget, Accounting to Budget: Accounting to budget is a c...

Accounting to Budget: Accounting to budget is a commonly used term to describe how an organisation controls its accounting process. Typically, an organisation divides its re

Buying and selling securities, Buying and Selling Securities One of the k...

Buying and Selling Securities One of the key features that may occur while investing in financial markets is that sometimes investors overlook the essential factors they should c

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