A Short Note on the ATP Fund of Denmark
The Danish ATP (Arbejdmarkedets TillaegsPension or Labor Market Supplementary Pension) fund is a public pension fund that was created in 1964 to complement the universal pension benefit that is financed from general tax revenues and is paid to all...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/02/8985431/short-note-atp-fund-denmark http://hdl.handle.net/10986/6367 |
| id |
okr-10986-6367 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE AMOUNTS ACCOUNT HOLDERS ACCOUNTING ACCOUNTING RULES ALTERNATIVE ASSET ANNUAL CONTRIBUTION ANNUAL RATE OF RETURN ASSET ALLOCATION ASSET ALLOCATIONS ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE EARNINGS AVERAGE EXCHANGE RATE BALANCE SHEET BASIS POINTS BENEFICIARY BENEFIT PLAN BOND BOND ISSUERS BOND PORTFOLIO BOND PORTFOLIOS BONDS BUDGETING CALCULATION CALCULATIONS CAPITAL GAINS CONFLICT OF INTEREST CONSUMER CONTRIBUTION CONTRIBUTION RATE CONTRIBUTIONS CORPORATE GOVERNANCE COST RECOVERY CREDIT INSTITUTIONS CURRENCY CURRENCY HEDGING CURRENCY RISK DEFERRED ANNUITIES DEFERRED ANNUITY DISABILITY DISABILITY PENSIONS DISCOUNT RATE DISSEMINATION OF INFORMATION DIVERSIFICATION DOMESTIC BOND DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC MARKET DOMESTIC SECURITIES EARLY RETIREMENT EARNINGS ELECTRONIC FUND EMPLOYER PENSION EQUITIES EQUITY MARKETS EQUITY PORTFOLIO EURO MARKETS EXCESS RETURNS EXPOSURE EXPOSURES EXTERNAL ASSET FINANCIAL DEVELOPMENTS FINANCIAL IMPACT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FIXED ANNUITY FIXED BENEFIT FOREIGN CURRENCY FOREIGN EQUITIES FUTURES GOVERNMENT BONDS HEDGES HOLDINGS INCOME INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMATION SYSTEMS INSTITUTIONAL INVESTORS INSURANCE INSURANCE PREMIUMS INTEREST RATE INTEREST RATE CHANGES INTEREST RATE SPREAD INTEREST RATE SWAPS INTEREST RATES INTERNAL CONTROL INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL INTEREST INTERNATIONAL MARKETS INVESTING INVESTMENT ASSETS INVESTMENT BEHAVIOR INVESTMENT COMPANY INVESTMENT EXPENSES INVESTMENT FIRM INVESTMENT FUND INVESTMENT INCOME INVESTMENT INSTITUTION INVESTMENT PERFORMANCE INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT RATE INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT STRATEGY LABOR MARKET LEVEL OF CONTRIBUTIONS LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFETIME LIMITED PARTNERSHIPS LOCAL MARKET LOW COSTS LUMP SUM LUMP SUMS MACROECONOMIC PERFORMANCE MALFEASANCE MARKET CONDITIONS MARKET INDEX MARKET RETURNS MARKET VALUATION MARKETING MATURITIES MATURITY MINIMUM BENEFITS MORTGAGE MORTGAGE BONDS MORTGAGE CREDIT MUTUAL FUNDS NORMAL RETIREMENT AGE OCCUPATIONAL PENSION OCCUPATIONAL PENSION COVERAGE OCCUPATIONAL SCHEMES OLDER WOMEN OTHER ASSETS PENSION PENSION BENEFIT PENSION BENEFITS PENSION FUND PENSION INCOME PENSION ISSUES PENSION LIABILITIES PENSION PLANS PENSION POLICY PENSION PROVIDER PENSION RIGHTS PENSION SAVINGS PENSION SCHEMES PENSION SYSTEM PENSIONABLE AGE PENSIONERS PENSIONS PERSONAL PENSION PERSONAL PENSION PLANS PERSONAL SAVINGS POOR INVESTMENT PORTFOLIO MANAGER PORTFOLIOS PRIVATE EQUITIES PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSIONS PUBLIC ACCOUNTABILITY PUBLIC PENSION PUBLIC PENSIONS RATE OF INFLATION RATE OF INTEREST RATE OF RETURN RATES OF RETURN REAL ESTATE RECORD KEEPING REPLACEMENT RATE RESERVES RESPONSIBILITIES RETIRED RETIRED WORKERS RETIREMENT RISK MANAGEMENT RISK SHARING SALARY SECURITIES SENIOR SHARE OF EQUITIES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS SOCIAL SECURITY SOCIALLY RESPONSIBLE INVESTMENTS SUPERVISORY BOARD SWAP SWAPS TAX TRADE UNIONS TRADING TRANSFER PAYMENTS TRANSPARENCY TRUSTEES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS USE OF DERIVATIVES VALUATION VALUE OF CONTRIBUTIONS VALUE OF PENSION VALUE OF PENSIONS VOLATILITY WAGE WAGE GROWTH WHITE-COLLAR WORKERS YIELD CURVE YOUNGER COHORTS |
| spellingShingle |
ABSOLUTE AMOUNTS ACCOUNT HOLDERS ACCOUNTING ACCOUNTING RULES ALTERNATIVE ASSET ANNUAL CONTRIBUTION ANNUAL RATE OF RETURN ASSET ALLOCATION ASSET ALLOCATIONS ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE EARNINGS AVERAGE EXCHANGE RATE BALANCE SHEET BASIS POINTS BENEFICIARY BENEFIT PLAN BOND BOND ISSUERS BOND PORTFOLIO BOND PORTFOLIOS BONDS BUDGETING CALCULATION CALCULATIONS CAPITAL GAINS CONFLICT OF INTEREST CONSUMER CONTRIBUTION CONTRIBUTION RATE CONTRIBUTIONS CORPORATE GOVERNANCE COST RECOVERY CREDIT INSTITUTIONS CURRENCY CURRENCY HEDGING CURRENCY RISK DEFERRED ANNUITIES DEFERRED ANNUITY DISABILITY DISABILITY PENSIONS DISCOUNT RATE DISSEMINATION OF INFORMATION DIVERSIFICATION DOMESTIC BOND DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC MARKET DOMESTIC SECURITIES EARLY RETIREMENT EARNINGS ELECTRONIC FUND EMPLOYER PENSION EQUITIES EQUITY MARKETS EQUITY PORTFOLIO EURO MARKETS EXCESS RETURNS EXPOSURE EXPOSURES EXTERNAL ASSET FINANCIAL DEVELOPMENTS FINANCIAL IMPACT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FIXED ANNUITY FIXED BENEFIT FOREIGN CURRENCY FOREIGN EQUITIES FUTURES GOVERNMENT BONDS HEDGES HOLDINGS INCOME INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMATION SYSTEMS INSTITUTIONAL INVESTORS INSURANCE INSURANCE PREMIUMS INTEREST RATE INTEREST RATE CHANGES INTEREST RATE SPREAD INTEREST RATE SWAPS INTEREST RATES INTERNAL CONTROL INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL INTEREST INTERNATIONAL MARKETS INVESTING INVESTMENT ASSETS INVESTMENT BEHAVIOR INVESTMENT COMPANY INVESTMENT EXPENSES INVESTMENT FIRM INVESTMENT FUND INVESTMENT INCOME INVESTMENT INSTITUTION INVESTMENT PERFORMANCE INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT RATE INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT STRATEGY LABOR MARKET LEVEL OF CONTRIBUTIONS LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFETIME LIMITED PARTNERSHIPS LOCAL MARKET LOW COSTS LUMP SUM LUMP SUMS MACROECONOMIC PERFORMANCE MALFEASANCE MARKET CONDITIONS MARKET INDEX MARKET RETURNS MARKET VALUATION MARKETING MATURITIES MATURITY MINIMUM BENEFITS MORTGAGE MORTGAGE BONDS MORTGAGE CREDIT MUTUAL FUNDS NORMAL RETIREMENT AGE OCCUPATIONAL PENSION OCCUPATIONAL PENSION COVERAGE OCCUPATIONAL SCHEMES OLDER WOMEN OTHER ASSETS PENSION PENSION BENEFIT PENSION BENEFITS PENSION FUND PENSION INCOME PENSION ISSUES PENSION LIABILITIES PENSION PLANS PENSION POLICY PENSION PROVIDER PENSION RIGHTS PENSION SAVINGS PENSION SCHEMES PENSION SYSTEM PENSIONABLE AGE PENSIONERS PENSIONS PERSONAL PENSION PERSONAL PENSION PLANS PERSONAL SAVINGS POOR INVESTMENT PORTFOLIO MANAGER PORTFOLIOS PRIVATE EQUITIES PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSIONS PUBLIC ACCOUNTABILITY PUBLIC PENSION PUBLIC PENSIONS RATE OF INFLATION RATE OF INTEREST RATE OF RETURN RATES OF RETURN REAL ESTATE RECORD KEEPING REPLACEMENT RATE RESERVES RESPONSIBILITIES RETIRED RETIRED WORKERS RETIREMENT RISK MANAGEMENT RISK SHARING SALARY SECURITIES SENIOR SHARE OF EQUITIES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS SOCIAL SECURITY SOCIALLY RESPONSIBLE INVESTMENTS SUPERVISORY BOARD SWAP SWAPS TAX TRADE UNIONS TRADING TRANSFER PAYMENTS TRANSPARENCY TRUSTEES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS USE OF DERIVATIVES VALUATION VALUE OF CONTRIBUTIONS VALUE OF PENSION VALUE OF PENSIONS VOLATILITY WAGE WAGE GROWTH WHITE-COLLAR WORKERS YIELD CURVE YOUNGER COHORTS Vittas, Dimitri A Short Note on the ATP Fund of Denmark |
| geographic_facet |
Europe and Central Asia Denmark |
| relation |
Policy Research Working Paper; No. 4505 |
| description |
The Danish ATP (Arbejdmarkedets
TillaegsPension or Labor Market Supplementary Pension) fund
is a public pension fund that was created in 1964 to
complement the universal pension benefit that is financed
from general tax revenues and is paid to all old-age
residents. When it was created, participation in ATP was
compulsory on most working people. But over the last decade
or so compulsory coverage has been expanded to most
recipients of transfer income. Contribution amounts are set
in absolute terms, but are low relative to earnings (less
than 1 percent of average earnings). ATP has benefited from
scale economies and compulsory worker participation and has
been able to operate with high efficiency and low costs. Its
investment performance has been uneven over the years,
reflecting the applied investment policies and rules as well
as prevailing financial conditions. In recent years, it has
been a leader among Danish pension institutions in adopting
innovative investment policies and has enjoyed an enviable
record of high investment returns and low operating costs.
In addition, it has long offered deferred group annuities
with guaranteed benefits and periodic bonuses (with profits
policies). However, ATP also suffers from several weaknesses
and shortcomings. It has a cumbersome governance structure,
rooted in labor market relations and the role of social
partners, while its group annuities have been based on
rather 'idiosyncratic' risk-sharing arrangements.
Nevertheless, it took the lead in using long-dated
interest-rate swaps in euro markets and recently created a
department that specializes in hedging its pension
liabilities. And it is in the process of adopting a new plan
for guaranteed benefits that aims to enhance the management
of both investment and longevity risks. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Vittas, Dimitri |
| author_facet |
Vittas, Dimitri |
| author_sort |
Vittas, Dimitri |
| title |
A Short Note on the ATP Fund of Denmark |
| title_short |
A Short Note on the ATP Fund of Denmark |
| title_full |
A Short Note on the ATP Fund of Denmark |
| title_fullStr |
A Short Note on the ATP Fund of Denmark |
| title_full_unstemmed |
A Short Note on the ATP Fund of Denmark |
| title_sort |
short note on the atp fund of denmark |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/02/8985431/short-note-atp-fund-denmark http://hdl.handle.net/10986/6367 |
| _version_ |
1764400228966858752 |
| spelling |
okr-10986-63672021-04-23T14:02:31Z A Short Note on the ATP Fund of Denmark Vittas, Dimitri ABSOLUTE AMOUNTS ACCOUNT HOLDERS ACCOUNTING ACCOUNTING RULES ALTERNATIVE ASSET ANNUAL CONTRIBUTION ANNUAL RATE OF RETURN ASSET ALLOCATION ASSET ALLOCATIONS ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE EARNINGS AVERAGE EXCHANGE RATE BALANCE SHEET BASIS POINTS BENEFICIARY BENEFIT PLAN BOND BOND ISSUERS BOND PORTFOLIO BOND PORTFOLIOS BONDS BUDGETING CALCULATION CALCULATIONS CAPITAL GAINS CONFLICT OF INTEREST CONSUMER CONTRIBUTION CONTRIBUTION RATE CONTRIBUTIONS CORPORATE GOVERNANCE COST RECOVERY CREDIT INSTITUTIONS CURRENCY CURRENCY HEDGING CURRENCY RISK DEFERRED ANNUITIES DEFERRED ANNUITY DISABILITY DISABILITY PENSIONS DISCOUNT RATE DISSEMINATION OF INFORMATION DIVERSIFICATION DOMESTIC BOND DOMESTIC BONDS DOMESTIC EQUITIES DOMESTIC MARKET DOMESTIC SECURITIES EARLY RETIREMENT EARNINGS ELECTRONIC FUND EMPLOYER PENSION EQUITIES EQUITY MARKETS EQUITY PORTFOLIO EURO MARKETS EXCESS RETURNS EXPOSURE EXPOSURES EXTERNAL ASSET FINANCIAL DEVELOPMENTS FINANCIAL IMPACT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FIXED ANNUITY FIXED BENEFIT FOREIGN CURRENCY FOREIGN EQUITIES FUTURES GOVERNMENT BONDS HEDGES HOLDINGS INCOME INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMATION SYSTEMS INSTITUTIONAL INVESTORS INSURANCE INSURANCE PREMIUMS INTEREST RATE INTEREST RATE CHANGES INTEREST RATE SPREAD INTEREST RATE SWAPS INTEREST RATES INTERNAL CONTROL INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL INTEREST INTERNATIONAL MARKETS INVESTING INVESTMENT ASSETS INVESTMENT BEHAVIOR INVESTMENT COMPANY INVESTMENT EXPENSES INVESTMENT FIRM INVESTMENT FUND INVESTMENT INCOME INVESTMENT INSTITUTION INVESTMENT PERFORMANCE INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT RATE INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT STRATEGY LABOR MARKET LEVEL OF CONTRIBUTIONS LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFETIME LIMITED PARTNERSHIPS LOCAL MARKET LOW COSTS LUMP SUM LUMP SUMS MACROECONOMIC PERFORMANCE MALFEASANCE MARKET CONDITIONS MARKET INDEX MARKET RETURNS MARKET VALUATION MARKETING MATURITIES MATURITY MINIMUM BENEFITS MORTGAGE MORTGAGE BONDS MORTGAGE CREDIT MUTUAL FUNDS NORMAL RETIREMENT AGE OCCUPATIONAL PENSION OCCUPATIONAL PENSION COVERAGE OCCUPATIONAL SCHEMES OLDER WOMEN OTHER ASSETS PENSION PENSION BENEFIT PENSION BENEFITS PENSION FUND PENSION INCOME PENSION ISSUES PENSION LIABILITIES PENSION PLANS PENSION POLICY PENSION PROVIDER PENSION RIGHTS PENSION SAVINGS PENSION SCHEMES PENSION SYSTEM PENSIONABLE AGE PENSIONERS PENSIONS PERSONAL PENSION PERSONAL PENSION PLANS PERSONAL SAVINGS POOR INVESTMENT PORTFOLIO MANAGER PORTFOLIOS PRIVATE EQUITIES PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSIONS PUBLIC ACCOUNTABILITY PUBLIC PENSION PUBLIC PENSIONS RATE OF INFLATION RATE OF INTEREST RATE OF RETURN RATES OF RETURN REAL ESTATE RECORD KEEPING REPLACEMENT RATE RESERVES RESPONSIBILITIES RETIRED RETIRED WORKERS RETIREMENT RISK MANAGEMENT RISK SHARING SALARY SECURITIES SENIOR SHARE OF EQUITIES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS SOCIAL SECURITY SOCIALLY RESPONSIBLE INVESTMENTS SUPERVISORY BOARD SWAP SWAPS TAX TRADE UNIONS TRADING TRANSFER PAYMENTS TRANSPARENCY TRUSTEES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS USE OF DERIVATIVES VALUATION VALUE OF CONTRIBUTIONS VALUE OF PENSION VALUE OF PENSIONS VOLATILITY WAGE WAGE GROWTH WHITE-COLLAR WORKERS YIELD CURVE YOUNGER COHORTS The Danish ATP (Arbejdmarkedets TillaegsPension or Labor Market Supplementary Pension) fund is a public pension fund that was created in 1964 to complement the universal pension benefit that is financed from general tax revenues and is paid to all old-age residents. When it was created, participation in ATP was compulsory on most working people. But over the last decade or so compulsory coverage has been expanded to most recipients of transfer income. Contribution amounts are set in absolute terms, but are low relative to earnings (less than 1 percent of average earnings). ATP has benefited from scale economies and compulsory worker participation and has been able to operate with high efficiency and low costs. Its investment performance has been uneven over the years, reflecting the applied investment policies and rules as well as prevailing financial conditions. In recent years, it has been a leader among Danish pension institutions in adopting innovative investment policies and has enjoyed an enviable record of high investment returns and low operating costs. In addition, it has long offered deferred group annuities with guaranteed benefits and periodic bonuses (with profits policies). However, ATP also suffers from several weaknesses and shortcomings. It has a cumbersome governance structure, rooted in labor market relations and the role of social partners, while its group annuities have been based on rather 'idiosyncratic' risk-sharing arrangements. Nevertheless, it took the lead in using long-dated interest-rate swaps in euro markets and recently created a department that specializes in hedging its pension liabilities. And it is in the process of adopting a new plan for guaranteed benefits that aims to enhance the management of both investment and longevity risks. 2012-05-24T18:07:09Z 2012-05-24T18:07:09Z 2008-02 http://documents.worldbank.org/curated/en/2008/02/8985431/short-note-atp-fund-denmark http://hdl.handle.net/10986/6367 English Policy Research Working Paper; No. 4505 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Denmark |