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Trustees can't shirk their responsibilities

Article Abstract:

Among the first responsibilities of a pension fund trustee is responsibility to the members of the pension plan. The second is loyalty to the fund itself, which may be managed internally by a fund manager or left, at some expense, to a bank, merchant bank, or investment management company. Pension funds should be 80-95% in real assets, i.e., conventional equities and real estate, with the rest in fixed interest securities, bonds, and cash. Funds should always be diversified to smooth out the cyclical effects of various investments. These should always be discussed with fund trustees and-or independent appraisers. If internal, the fund manager or trustee will be running a department that requires various controls, including liaison with specialist managers or specialist organizations for different investments. Care must be taken not to appear to be trading for trading's sake. Accounting controls are crucial.

Pensions, Powers and duties, Trusts and trustees, Trustees, Trusts (Law)

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Protecting your fund from predators

Article Abstract:

Surpluses in corporate pension plans can attract takeover bids. For accounting purposes, these may be treated as either a surplus or a deficit, depending on the actuarial method used: past service reserve method (deficit method) or discontinuance method (surplus method). A surplus should always be protected because it belongs to the pension fund members, but in the event of takeover it could be absorbed by the purchasing company. The use of a trigger clause, preventing loss of pension fund value in the event of a takeover, must be used with great caution, since it may ward off the takeover bidder but undervalue the corporation itself.

Methods, Accounting, Corporate anti-takeover measures, Antitakeover strategies

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Fashion statement

Article Abstract:

Changing fashions in pension fund management in the UK are discussed, with focus on the slow pace of change. The shift from defined benefit to cash purchase schemes, and better benchmarking methods are described.

Compensation and benefits, Workers

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