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Resources

IPFI Issue Brief: Behind BlackRock’s ESG Shift

BlackRock, the world’s largest private asset manager, has over the past two years begun to shift its investment strategy, placing a much greater emphasis on environmental, social, and governance (ESG) factors and boosting the presence of ESG funds in its portfolios. In a newly released issue brief, the Institute for Pension Fund Integrity delves into […]

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Pension Gap Calculator

Select your state of locality below and adjust the assumed rate of return and predicted mortality rate to see the effect of these changes upon their pension gap. Read about the Pension Gap Calculator Tool here.

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Blog

In Case You Missed It – The Department of Labor has Issued a Finalized Rule on ESG Investing in ERISA Pension Plans

November 17, 2020

Washington, DC – The Department of Labor has finalized and released a new rule on tax-qualified retirement plans governed by the Employee Retirement Income Security Act (ERISA) in order to codify the extent to which Environmental, Social, and Governance (ESG) considerations factor into investment decisions. As laid out in the rule, ERISA plan fiduciaries may not invest in ESG vehicles […]

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CalPERS Focus Remains on Private Equity After Ben Meng’s Departure

November 10, 2020

After Ben Meng’s departure from California Public Employee’s Retirement System (CalPERS), the state pension fund is looking to increase its margins by investing more into private equity. Meng worked for over a year at CalPERS where he oversaw a disappointing level of growth, and suddenly left in August 2020 after a private complaint alleged that […]

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Investing in Diversity in Pension Plans

November 4, 2020

The investment profession is slowly moving away from the stereotype of “pale, male and stale” as newer and smaller money managers take advantage of opportunities. Pension plans are citing various reasons for increasing diversity among their staff, including social responsibility, better returns, appealing to more potential investment partners, and promoting an investment class that “thinks […]

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Core Principles

Adherence to Fiduciary Responsibility

The Institute believes that officials residing over pension funds should be held to a high degree of fiduciary responsibility, consistently making decisions on investment that will benefit the long-term growth and security of the fund. Consistent dividend yield, resistance to market flux and strong corporate credit ratings are just a few variables that must be taken into account by these individuals. Often times outside interests have pressured pension funds and other entities to divest from certain investments under political pressures, which would subject pension funds to lower financial returns. This divestment would violate a pension fund’s fiduciary responsibility.

Balanced Economic, Social, and Governance (ESG) Factor Investment

Accounting for ESG factors in investments can prove to be advantageous with greater transparency and consistently high returns. With more than 80% of all corporations releasing ESG factor reports, options are plentiful for the investment of pension funds into holdings with positive ESG outlook. ESG factors should not dictate a political agenda for guiding public investment decisions.

Long term Pension-Fund Return

When investing with pension funds and other long-term payout entities it is imperative that long-term stock stability be sought after in the investment process. Part of the responsibility of the managers of pension funds is to identify long-term, low market volatility investments that will allow for prolonged growth and a sustaining of pension budget health for years on end.

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