Governing and managing fiduciaries and anyone who is responsible for the investments of public pension fund assets.
One of the foremost challenges for fiduciaries who govern or manage public pension funds is to understand in a comprehensive manner the great variety of risks facing a pension fund in delivering its ultimate objective: the provision of retirement benefits to future and current beneficiaries. Those who manage public pension systems must establish a clear framework for understanding and categorizing risk and then treating it effectively. As pensions grow increasingly complex, it becomes more important for finance officials to make intelligent decisions about risk across every area of the enterprise.
Teach participants about:
- The types of risk public pension funds are subject to.
- How public pension plans have changed over the last 15 years.
- The role of trustees in addressing public pension risk.
- Concepts of pension governance.
- The importance of board education in an organization’s strategic policy agenda, and the understanding of how that risk is factored into every decision.
- The need to review the risks of both action and inaction whenever staff and consultants present policy issues and policy recommendation for consideration.
- How strategic choices generally relate to governance, strategy, resource allocation, and oversight.
- Determining the strategic policy agenda, reserved board powers, authority delegated to staff, asset allocation, and risk tolerance.
- Defining the investment policy.
- Establishing investment beliefs and policies.
- Evaluating and approving a strategic plan.
- Ensuring adequate resource allocation.
- Overseeing the implementation of the strategy.
- Obtaining independent confirmation of reports from management.
- Learning the importance of promoting trust, transparency, and communication.
- Considering the trends/shifts in the policy and investment environment, including volatility and complexity of financial markets.
- Dealing with funding uncertainty.
- Making investment model choices (insourcing versus outsourcing).
- Answering key questions such as how much the plan can afford to lose and what risk limits are appropriate.
- Understanding Pension Fund Investment Riskbest practice
- Enhancing the Reliability of Actuarial Valuations for Pension Plans best practice