Reports on the pensions industry can be dull and they
are usually overlooked. One such study published last week attracted few
headlines yet offered wonderful insights.
The
world’s 300 largest pension schemes, a study put together by Towers Watson,
allowed interesting conclusions to be drawn on who owns the world’s retirement
wealth – and what that says about how each country will meet future pension
costs.
Canada’s Pension plans do well, we have 19 in the top
300 plans. Canadians who are in the following plans should be happy that their
pensions are doing well compared to the rest of the world.
There is debate on
what to do with the Canada Pension Plan, I think, as the Canada Pension Plan is the 8th
ranked plan in the world, we should be expanding this plan.
The Canada Pension Plan is described by Towers Watson
as one of a number of Sovereign Pension Plan. Sovereign Wealth Funds (SWFs) are
pools of assets owned and managed directly or indirectly by governments to
achieve national objectives.
They may be funded by: i) foreign exchange
reserves; ii) the sale of scarce resources such as oil; or iii) from general
tax and other revenue. There are a number of potential objectives of SWFs,
which are not always easy to attribute to a particular fund; and some funds may
have more than one of the distinguishable objectives. Some of these are: i) to
diversify assets; ii) to get a better return on reserves; iii) to provide for pensions
in the future; iv) to provide for future generations when natural resources run
out; v) price stabilisation schemes; vi) to promote industrialisation; and vii)
to promote strategic and political objectives.
These funds have raised concerns These funds have
raised concerns about: i) financial stability, ii) corporate governance and
iii) political interference and protectionism.
Public Pension Reserve Funds (PPRFs) have a more
specific objective At the same time governments have formed other large pools
of capital, in particular to finance public pensions, which are generally
referred to as Public Pension Reserve Funds (PPRFs). There are two such types
of funds: those set up and owned directly by government (Sovereign Pension
Reserve Funds, or SPRFs) and those belonging to the social security system
(Social Security Reserve Funds, or SSRFs). SPRFs may be considered a type of
SWF with an exclusive mandate to finance future public pension expenditures. On
the other hand, not all SSRFs may be considered SWFs. Some are legally
independent of government and their balances are not integrated for national
accounting purposes into the government accounts.
The Sovereign Wealth Fund Institute (SWFI) is a global
organization designed to study sovereign wealth funds, public pensions,
superannuation funds, central banks and other long-term public investors in the
areas of investing, asset allocation, risk, governance, economics, policy,
trade and other relevant issues
Pension plans ranks are below:
Rank Pension Name Country Assets (in Millions)
No comments:
Post a Comment