Pension Reserve Funds: Aligning Form and Function

Abstract:     
In an era of population aging and increasing fiscal pressures on nation-states, pension reserve funds (PRFs) have been mooted as effective investment vehicles for realizing future liabilities and achieving some balance between generations. However, concerns have been raised about the potential negative impacts of politicizing PRFs. This article considers the design, governance, and management of PRFs with respect to holding partisan politics and bureaucratic encroachment at bay, and suggests a set of principles and policies that the authors believe are essential to functional PRF performance. Inspiration is drawn from previous research on pension fund governance and detailed case studies of four leading PRF exemplars.

Number of Pages in PDF File: 9

Keywords: Encroachment, Governance, Investment Management, Partisan Politics, Pension Fund

Accepted Paper Series