Public Management
This Note on public management of pension funds concludes that publicly-managed pension reserves are often used to finance non-pension policy. Public pension fund managers tend to invest based on objectives unrelated to pension provision. These inc...
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Format: | Brief |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2000/01/6247371/public-management http://hdl.handle.net/10986/11443 |
Summary: | This Note on public management of
pension funds concludes that publicly-managed pension
reserves are often used to finance non-pension policy.
Public pension fund managers tend to invest based on
objectives unrelated to pension provision. These include
social and economically target investments such as housing.
Often governments look to pension reserves as a convenient
and cheap way to finance deficits. One result is that public
management produces poor returns relative to what could
potentially be earned. Any pre-funding of long term pension
obligations requires some minimal level of good governance.
Although good governments perform better, public management
produces inferior returns across all countries. As a result
members of the scheme have to pay higher contributions or
receive lower benefits. The evidence suggests that public
management of pension reserves should generally be avoided. |
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