ABSTRACT
Every pension fund should have a governing body vested with the power to administer the pension fund and who is ultimately responsible for ensuring the adherence to the terms of the arrangement and the protection of the best interest of plan members and beneficiaries. Defined benefit (DB) plans demonstrably provide retirement income security more effectively than other vehicles, though workers may also seek additional sources of income to retire with dignity. Funding these plans and generating sustainable and risk-appropriate investment returns within volatile financial markets are ongoing challenges for trustees and individual investors. Under numerous laws, pension fund trustees owe certain fiduciary duties, including transparency, competence, and accountability, to the beneficiaries of the funds that they manage. It is important to note that pension funds and other large institutional investors have been instrumental in the increased adoption of good governance practices among the companies they invest in, particularly for public-sector companies.
