Practical Applications of Alternative Asset Fees, Returns, and Volatility of State Pension Funds: A Case Study of the New Jersey Pension Fund

2020 ◽  
Vol 22 (Supplement2) ◽  
pp. 1.3-7
Author(s):  
Jeff Hooke ◽  
Carol Park ◽  
Ken C. Yook
Keyword(s):  
New Jersey ◽  
Pension Fund ◽  
Pension Funds ◽  
Practical Applications ◽  
State Pension ◽  
State Pension Funds

The impact of adaptability on the competitiveness of non-State pension funds

2021 ◽  
Vol 27 (11) ◽  
pp. 2606-2636
Author(s):  
Ekaterina S. YAROVAYA
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
High Variability ◽  
Current Time ◽  
Factors Affecting ◽  
Existing Problems ◽  
State Pension ◽  
The Impact ◽  
State Pension Funds

Subject. This article deals with the analysis of competitiveness, which is an important component of the strategic management of a non-State pension fund. Objectives. The article aims to study the existing approaches to the analysis of competitiveness, determine the role of the indicator of adaptability of competitiveness of non-State pension funds in conditions of high variability of the external environment, and formulate recommendations for drawing up criteria for the enterprise competitiveness taking into account the specifics of the activities of the funds. Methods. For the study, I used analysis, and the systems, and structural and functional approaches. Results. The article defines and classifies the factors affecting the competitiveness of non-State pension funds in modern market conditions. It substantiates the influence of the indicator of adaptability on the competitiveness of non-State pension funds. The article also proposes an approach to ranking this indicator, which can be applied regardless of the chosen method for assessing the competitiveness of non-State pension funds. Conclusions. The article concludes that the testing of the assessment of the non-State pension fund competitiveness using the author-proposed adaptability indicator helps determine the level of non-State pension fund competitiveness at the current time, track the changes, and identify the existing problems, the causes of their occurrence, and thereby ensure the conditions under which the non-State pension fund has the opportunity to promptly respond and adapt to external changes thus ensuring its stability in the market.

scholarly journals DEVELOPMENT OF NON-STATE PENSION FUNDS OF UKRAINE: PROBLEMS AND PERSPECTIVES

2021 ◽  
Author(s):  
Natalya Tataryn ◽  
Kateryna Zakorko ◽  
Sofia Kozar
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Public Awareness ◽  
Pension Funds ◽  
The State ◽  
Private Pension ◽  
State Pension ◽  
Private Pension System ◽  
State Pension Funds ◽  
Legal Entities

The article considers topical issues of determining the current state of development of the private pension system in Ukraine, and defines the concept of "private pension fund". In economic essence, the system of non-state pension fund is defined as an integral part of the system of accumulative pension provision, based on voluntary participation of individuals and legal entities in the formation of pension savings in order to receive additional pension contributions. Problems that hinder the development of private pension funds, namely the shadowing of wages and labor relations, lack of public awareness, lack of legislation are identified. The functioning of private pension funds in the country depends not only on reforming the existing pension system, but also on the growth of incomes, their de-shadowing and development of the financial market in general. The current pension system is not able to provide the population with the necessary pension assets. This problem can be solved by intensifying the activities of private pension funds. Emphasis is placed on the need and importance of a voluntary private pension system and its role in ensuring the development of the state economy. As world experience shows, in a market economy, the development of private pension funds is one of the important components to ensure effective functioning of the state. Private pension funds are powerful investment investors because they can mobilize additional investment resources. The main purpose of investing pension assets is to preserve the savings of the population. The main indicators of activity of non-state pension funds are analyzed, namely: pension contributions, pension payments, the number of concluded pension contracts, the amount of investment income, etc. Further trends in the development of private pension provision in Ukraine are noted, substantiated the necessary measures to intensify activities in modern economic conditions, proposed recommendations for solving existing problems of institutions. However, in implementing the proposed measures should be remembered participation of both individuals and legal entities.

EXPERIENCE OF EUROPEAN COUNTRIES IN THE FIELD OF ORGANIZATION OF PENSION FUND MANAGEMENT

2017 ◽  
Author(s):  
Andrii Ishchuk ◽  
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
European Countries ◽  
The European Union ◽  
Fund Management ◽  
Association Agreement ◽  
Pension Fund Management ◽  
Foreign Countries ◽  
State Pension ◽  
State Pension Funds

The article is devoted to highlighting the experience of some foreign countries in the field of organization of pension fund management and identifying opportunities for its application in Ukraine. The author proves that in Ukraine the need for pension reform is long overdue, which also includes reforming the public administration system in this area. It is argued that taking into account the foreign experience of some countries, in particular European ones in the field of pension fund management will not only increase the efficiency of reform in Ukraine, but also fulfill a number of international obligations, the main of which are defined by the Association Agreement between Ukraine. , and the European Union, the European Atomic Energy Community and their Member States, of the other part. Based on the analysis of scientific sources, the article summarizes the existing models of pension fund organization in the world and clarifies the features of the organization and types of pension funds in some European countries. In particular, it has been established that in most European countries state and non-state pension funds are formed according to the form of ownership, and the private form of pension funds is a priority.]Based on a study of scientific sources and legislation of foreign countries, the author substantiates that in most European countries the state manages state pension funds and constantly monitors the functioning of non-state funds. The article develops proposals on the possibility of applying the positive experience of some European countries in the field of organization of pension funds for the successful reform of the pension management system in Ukraine. In particular, it is proposed to ensure the organization of reliable and cost-effective long-term private pension funds; to ensure the state's constant control over the functioning of non-state pension funds, as well as to ensure transparency and openness of information about the activities of such funds; to involve employers, trade unions and other participants in social dialogue in the organization and management of such funds and take other measures.

Problems of financial and legal regulation of private pension funds’ activity

2021 ◽  
pp. 162-168
Author(s):  
R. Polischuk
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
State Intervention ◽  
Legal Regulation ◽  
Pension Funds ◽  
Private Pension ◽  
Eu Directive ◽  
National Bank ◽  
State Pension ◽  
State Pension Funds

The problem of lack of interest of the population to participate in the formation of pension savings is one of the key problems of private pension funds. Accounting and registration of various rights, licensing and accreditation of institutions, establishment of norms, quotas and other restrictions, control and supervision, as well as the application of material sanctions and measures of administrative coercion are state regulation of private pension provision. The National Securities and Stock Market Commission, the National Bank of Ukraine, and the Antimonopoly Committee of Ukraine exercise state supervision and control over the activities of non-state pension funds. The current distribution of powers to oversee the activities of private pension funds between regulators is not effective enough. State intervention in the field of private pension funds should be timely, appropriate and limited. The need to invest heavily in setting up an administrator and an asset management company significantly reduces the attractiveness of private pension provision for potential investors, and the over-regulation of the institution under review reduces the level of confidence of ordinary citizens, employers and investors. The lack of components in the management system of non-state pension funds responsible for risk management and internal audit, the purpose of which is to protect against risks and exercise internal control, respectively, is a significant shortcoming of today. Ways to solve the above problems are, in particular: the unification of state regulators of the financial market in Ukraine and the creation of a mega-regulator for the activities of NPFs; abolition of normative legal acts, which in practice have proved their ineffectiveness, in terms of regulating the activities of NPFs, with the simultaneous adoption of new legislation that would “reduce the cost” of the mechanism of creation and operation of the institution of NPFs; implementation of EU Directive 2016/2341 of 14 December 2016 into the legislation of Ukraine regarding the functions of risk management and internal audit of NPFs; introduction of legal norms prohibiting, in particular, the National Bank of Ukraine from interfering in the activities of NPFs in terms of return of their assets by insolvent banks and investment activities, on grounds not expressly provided by the Law of Ukraine “On Non-State Pension Provision” and establishing legal grounds for personal liability persons for such actions.

Institution of Banking Pension Provisions: Preconditions, Nature, Competition with Traditional Institutions

2015 ◽  
Vol 2015 (2) ◽  
pp. 27-55
Author(s):  
Yuriy Ezrokh
Keyword(s):  
Financial Institutions ◽  
Pension Fund ◽  
Pension System ◽  
Pension Reform ◽  
Banking System ◽  
Pension Funds ◽  
Econometric Analysis ◽  
Traditional Institutions ◽  
State Pension ◽  
Pension Benefits

The article analyzes the pension reform implemented in Russia in 2013–2014, provides the modeling of possible pensions, determines the efficiency boundaries for the use of insurance and savings-insurance schemes offered by the Pension Fund of Russia. The author examines the activities and effectiveness in managing pension savings and reserves from non-state pension funds, especially the system of voluntary savings insurance. The study identifies the challenges faced by these financial institutions, which constrain the development of the Russian pension system. Drawing on logical and econometric analysis the author identifies the competitive opportunity for banks to participate in the Pension Benefits Act, calculates the proposals’ efficiency for future retirees and the banking system as a whole, determines the contribution of the proposed solutions to enhanced competition and more competitive banking environment.

Portfolio allocation for public pension funds

2011 ◽  
Vol 10 (2) ◽  
pp. 221-245 ◽  
Author(s):  
GEORGE PENNACCHI ◽  
MAHDI RASTAD
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Pension Plans ◽  
Public Pension ◽  
Annual Data ◽  
Portfolio Risk ◽  
Fund Management ◽  
Pension Fund Management ◽  
Portfolio Allocations ◽  
State Pension

AbstractThis paper presents a model of a public pension fund's choice of portfolio risk. Optimal portfolio allocations are derived when pension fund management maximize the utility of wealth of a representative taxpayer or when pension fund management maximize their own utility of compensation. The model's implications are examined using annual data on the portfolio allocations and plan characteristics of 125 state pension funds over the 2000–2009 period. Consistent with agency behavior by public pension fund management, we find evidence that funds chose greater overall asset – liability portfolio risk following periods of relatively poor investment performance. In addition, pension plans that select a relatively high rate with which to discount their liabilities tend to choose riskier portfolios. Moreover, consistent with a desire to gamble for higher benefits, pension plans take more risk when they have greater representation by plan participants on their Boards of Trustees.

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