Governance, Accountability, and Investment Policies of Public Pension Funds
Proper management of public pension funds contributes to fulfilling
the promise of providing adequate retirement income while developing
financial markets. The issue of management has only recently attracted the attention of policymakers, practitioners, and development agencies. Most important, countries that do not pay sufficient attention to the management of public pension funds often discover that these funds have been mismanaged and failed to contribute to financial markets’ development.Government intervention is then required to deal with ensuing problems.In addition, in many countries public pension funds represent an important share of the financial system’s assets. Special issues concerning these funds include fund governance, fund managers’ accountability, investment policies,the exercising of shareholders’ rights, and corporateate governance; and
fund management has an impact on fiscal policy and financial markets.