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

Give new marketing strategy, a) B2C businesses provide goods and services t...

a) B2C businesses provide goods and services to the general public, i.e. consumers. HMV sell music, books and DVDs (via Waterstones) to private individuals and can therefore be cla

Explain the term finance companies, Finance companies Finance companies...

Finance companies Finance companies make loans to individuals as well as corporations by providing consumer lending business lending also mortgage financing. A few of their loa

Define deposit loan rate spread in the eurodollar, How does the deposit-loa...

How does the deposit-loan rate spread in the Eurodollar market compare with the deposit-loan rate spread in the domestic U.S. banking system?  Why? Answer: The deposit-loan sprea

The japanese pension fund system, The Japanese Pension Fund System The J...

The Japanese Pension Fund System The Japanese pension system is a multi-pillar system. Public and private pension schemes are the two important pillars. The first tier is the Ba

Callable bonds and puttable bonds, Convertible bonds can be classified into...

Convertible bonds can be classified into different types such as callable bonds and puttable bonds. These bonds are discussed as follows: Basics of Callable Bonds A callabl

State the term- adequate working capital, State the term- adequate working ...

State the term- adequate working capital If a firm doesn't have adequate working capital, that is, it doesn't invest sufficient funds in current assets, it can become illiquid

Objectives of cash management, Q. Objectives of Cash Management? (i) To...

Q. Objectives of Cash Management? (i) To sustain Optimum Cash Balance: - The major objective of cash management is to determine the optimum cash balance required in the busines

Corporate debt instruments, Corporate debt instruments are the financ...

Corporate debt instruments are the financial obligations of a corporation having priority over the claims of the shareholders (equity or preferred) at the time of

Investor’s considerations -financial market, Investor's Considerations ...

Investor's Considerations As mentioned above, every investor before taking an investment decision, must consider the following aspects: Risk: The primary consideration for t

Explain marginal cost of capital, Q. Explain Marginal cost of capital? ...

Q. Explain Marginal cost of capital? The calculation of cost of capital focused when the firms total financing and its paten of financing is given and remains constant. However

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