Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
- References
17 - Effective investment governance in defined contribution schemes
Published online by Cambridge University Press: 05 July 2011
Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
- References
Summary
DC pensions are guided consumer products
Effective investment governance in defined contribution (DC) schemes needs to start with a clear understanding of the members’ role and responsibilities within the investment process.
When DC pension plans were first introduced, there may have been an expectation (or at least a hope) that employees would act as the rational consumers of classical economic theory, making optimal saving and investment decisions in accordance with their personal preferences, and thereby doing effectively everything that the professionals had previously done for them in defined benefit (DB) pension schemes.
- Type
- Chapter
- Information
- Good Governance for Pension Schemes , pp. 267 - 288Publisher: Cambridge University PressPrint publication year: 2011
References
Naïve Diversification Strategies in Retirement Savings Plans 2001 91 Alcuin, Epistola 111, p. 160.79Google Scholar
Pension Design and Structure: New Lessons from Behavioural FinanceOxfordOxford University Press 2002Google Scholar
Nudge: Improving Decisions about Health, Wealth, and HappinessNew Haven, CTYale University Press 2008Google Scholar
Optimal Defaults and Active Decisions 2003 93 American Economic Review Papers and Proceedings180CrossRefGoogle Scholar