Public Pension Fund Management : Governance, Accountability, and Investment Policies

Intro -- Contents -- Foreword -- Contributors -- Introduction -- Chapter 1 -- A Framework for Public Pension Fund Management -- The Growth of Public Sector Pension Funds -- Governance of Public Pension Schemes -- Public Sector Governance: General Issues -- Laying a Foundation for Public Pension Scheme Governance -- A Governance Checklist -- Accountability of Public Sector Pension Schemes -- Laying a Foundation for Public Pension Scheme Accountability -- An Accountability Checklist -- Investment Policies -- Laying a Foundation for Public Pension Scheme Investment Policy and Processes -- An Investment Policy Checklist -- Conclusion -- References -- Annex 1.A: ABP Investment Policy Statement -- Introduction -- I. The Investment process -- II. Investment plans -- III. Implementation of the investment plan -- IV. Social responsibility -- V. The role of the shareholder ("corporate governance") -- VI. Amendment of this Code -- Annex 1.B: Index of Governance Framework Document- Australian Prudential Regulation Authority (APRA) -- 1. Foundations -- 2. Key Roles and Relationships -- 3. Internal Accountability Framework -- 4. External Accountability Framework -- 5. Consequences of Failure to Meet Responsibilities -- Appendix A-Statutory Responsibilities of Board Members -- Appendix B-Matrix of Delegations -- Notes -- Chapter 2 -- Governance of Public Pension Funds:Lessons from Corporate Governance and International Evidence -- Agency Theory and Corporate Governance -- Agency Problems: Separation of Ownership and Control and Moral Hazard Problems -- Resolving Problems -- Agency Problems in Public Pension Plans -- Who Are Public Pension Fund Stakeholders? -- Potential Agency Problems -- Political Involvement: Government Restrictions and Social Mandates -- The Effects on Fund Performance -- Solving Agency Problems -- Separation of Ownership and Control.