Pension Reserve Funds: Aligning Form and Function

Clark, Gordon L.; Monk, Ashby H. B.

Pension Reserve Funds: Aligning Form and Function

Rotman International Journal of Pension Management, Vol. 4, No. 2, p. 18, Fall 2011

9 Pages Posted: 1 Oct 2011

See all articles by Gordon L. Clark

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment

Ashby H. B. Monk

Stanford University - Global Projects Center

Date Written: September 21, 2011

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.

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

Suggested Citation: Suggested Citation

Clark, Gordon L. and Monk, Ashby H. B., Pension Reserve Funds: Aligning Form and Function (September 21, 2011). Rotman International Journal of Pension Management, Vol. 4, No. 2, p. 18, Fall 2011. Available at SSRN: https://ssrn.com/abstract=1936000