Proving Incentives for Long-Term Investment by Pension Funds : The Use of Outcome-based Benchmarks

Stewart, Fiona

World Bank, Washington, DC

关键词: ACCOUNTING;    AMOUNT OF RISK;    ANNUITY;    ARBITRAGE;    ASSET CLASS;   

DOI  :  10.1596/1813-9450-6885
RP-ID  :  WPS6885

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A fundamental goal of any pension systemis to ensure that members receive an adequate income whenthey retire. Although traditional defined benefit pensionplans set out how pension income will be determined inadvance and then strive to deliver this, the growing numberof defined contribution plans accumulate a sum of assetswhich can then be turned into a pension income onretirement. However, the amount of this retirement income isnot predefined This frequently leads to a focus by not onlymost pension providers, but also regulators and pension planmembers themselves on the short-term accumulation of pensionassets rather than the longer-term goal of securing anadequate retirement income. This paper discusses a possiblesolution to this challenge: the use of benchmarks toencourage pension funds to invest with the longer-term goalof delivering adequate retirement income in mind. Examplesare provided of leading pension funds that already work withlong-term, outcome-based benchmarks. The paper suggests amethodology for pension regulators to use in order toincentivize pension funds in their jurisdictions to adopt asimilar approach.