Compensation of pension organization employees is an integral part of strategy. A survey of pay practices in the investment functions of 37 pension funds provides a picture of the range of approaches. Four major factors help explain compensation: 1) fund characteristics such as mission and size, ...
Pension funds and mutual funds are two prominent investment vehicles that play crucial roles in individuals' financial planning and retirement savings. While both offer opportunities for wealth accumulation and financial security, they operate in distinct ways. Understanding the similarities and differences ...
pension funds are designed to generate returns over extended periods, aligning with the extended time horizon of retirement planning. As such, pension funds often allocate their portfolios across a diverse range of assets, including stocks, bonds, real estate...
ERISA does not cover public pension funds, which instead follow the rules established by state governments and sometimes state constitutions.6The federal government also operates pensions for its employees which are regulated as well. Nor does the PBGC insure public plans.7In most states, taxpayers ...
Tight pension fund regulations are designed to protect beneficiaries, but their opponents argue that imposing short-term funding constraints to such long-term investors would only increase the cost of pension financing. We analyze this question in the context of a formal continuous-time dynamic asset...
The fund-of-funds approach has grown in recent years, particularly among institutional investors like pension funds and endowments seeking to spread risk and maximize returns. However, FOFs are infamous for their multiple layers offees. You pay not only for the fund in which you’re directly in...
CalPERS. I think the significance of climate risk is common across so many different pension funds. There’s really nowhere for us to hide from climate change, given our size, and given the fact that we are meant to deliver pension and health benefits to public employees over multiple ...
Like the IRA, the 401(k) comes in two varieties: a traditional 401(k), where funds are contributed with pre-tax money, and aRoth 401(k), where funds are contributed with after-tax money. A 401(k) may offer similar benefits to an IRA, but it has some major differences, too. ...
Thus, for years the insurance industry has been sold the supposed benefits of ERMs, and now the same is being done to pension funds as well. We suggest, however, that ERMs are anything but a good investment asset for pension funds. We suggest that for any investment asset to be suitable...
Pension diversification implies that the pension funds are well invested in a variety of geographies, currencies, industries, and asset classes to create an optimized portfolio. The risk-return profile of a diversified pension portfolio is balanced and ensures uninterrupted post-retirement income. It se...