National Pension Research Articles

A COMPARATIVE STUDY ON THE PERFORMANCE OF NIFTY 50 AND EQUITY FUNDS UNDER TIER-II OF NATIONAL PENSION SCHEME

The National Pension Scheme (NPS) is a defined contribution and a corporate pension fund that provides financial assistance to all Indian citizens. There are two types of accounts in the National Pension Scheme: Tier I and Tier II. Tier I is a mandatory deposit pension fund account and Tier II is a voluntary pension account. Tier I and Tier II is are consisted of different assets namely, equity, government security and alternative asset. The equity schemes are directly linked with the market. The return of all the fund managers in equity schemes are not same as the portfolio of all the fund managers are not same. Secondary data has been collected from respective websites of Pension Fund Managers and has been used to calculate mean, SD, Variance, and Correlation to predict the performance of equity funds. ANOVA and T-test have been for assessing the comparative analysis of the different fund managers under equity scheme in tier II. As per the study, LIC PF and ICICI PF are the best performer during the study period. The performance of SBI PF is poor among other equity funds under Tier-II of NPS during the study period. In term of risk, LIC PF is the higher risky equity fund and UIT PF is the lowest risky equity fund under Tier-II of NPS. It can be said that investors need to be high-risk taker to invest in that LIC PF. Through the risk analysis during said period of time, it is found that the ability to observe risk differs in equity funds under Tier-II of NPS. The main reason for this being a voluntary account of Tier -II. As there is no lock-in period in this account, the investors mostly use for a short-term purpose. In the recent decision of the government, Tier-II offers a lock-in period for 3 years with tax benefit. This decision may be affected the investment pattern of the investors. KEY WORDS: - National Pension Scheme, Performance, Equity Scheme, Nifty 50

Firm Attributes and Value of Pension Fund Administrators in Nigeria

Value creation is a key objective of every firm and this is applicable to Pension Fund Administrators (PFAs) who seek to remain competitive and achieve superior corporate performance by taking advantage of certain firm attributes. Studies have shown that value of PFAs can impact the financial health of a significant number of individuals during their retirement years if their Retirement Saving Account (RSA) funds are well managed. This objective is scarcely achieved following the increasing challenge faced by the pension fund industry in the dimensions of dearth of investment, poor investment decision by PFAs, restrictions and investment limits by the regulator and the hunt for yield for its RSA contributors amid an environment of low interest rates. Studies that examined the combined effect of firm attributes of firm age, size, contribution density, number of contributors, board size, board quality and branch network on the value of PFAs are lean. This study investigated the effect of firm attributes on Value of Pension Fund Administrators (net asset value per unit) in Nigeria. The study employed <i>ex-post facto</i> research design. Purposive sampling technique was used to select a sample of fifteen (15) from 22 pension fund administrators which have been in existence for the past ten years (2011-2020). Data for this study were extracted from the published annual reports and accounts of the sampled companies which were validated by certification of external auditors and National Pension Commission (PenCom). Data were analysed using descriptive and inferential (multiple regression) statistics at α = 0.05 level of significance. The study found that firm attributes jointly exerted significant impact on net asset value per unit of pension fund administrators (<i>Adj</i>.R² = 0.9298, F(6, 143) = 254.96, p < 0.05). The study concluded that firm attributes enhanced the value of pension fund administrators in Nigeria. It was recommended that pension fund managers should make stakeholders’ interest (contributors and shareholders) a priority and use the selected firm attributes to their advantage to drive performance and create value.

Determination of Satisfaction level of National Pension System in India: An Exploratory study

Determination of Satisfaction level of National Pension System in India: An Exploratory study

Formation of accumulative component of general mandatory state pension insurance as a direction of pension system reform

For more than thirty years, the problem of achieving an adequate level of pension benefits for citizens of Ukraine remains extremely relevant. Unfortunately, the current socio-economic and military-political situation indicates only a deterioration in the factors influencing the national pension system. The article analyzes the negative factors influencing the pension system, in particular the solidarity component. Thus, in recent years, the demographic situation in Ukraine has only worsened, as along with the natural processes of population depopulation, labor migration abroad continues, which, unfortunately, was supplemented by waves of refugees with the beginning of the war. The processes of de-shadowing of the economy, in particular the labor market, are also rather slow and inconsistent. Thus, in some sectors, about half of the workers may be informally employed. The pace of economic growth and the development of financial sector instruments have also not been very encouraging in recent years. Therefore, it is pointed out that all these factors have an extremely negative impact on the functioning of the joint pension system, moreover, for its financial stability, a significant share of funds from the state budget is redistributed annually. However, despite such significant financial costs, the level of adequacy of benefits for most retirees is extremely low. It is noted that one of the effective options to improve the level of pension provision of citizens is the introduction of a mandatory funded pension system, which in its content is designed: first - to supplement pension benefits to participants, and secondly - to diversify the risks of material impoverishment of such persons old age. The article analyzes the existing scenario for the introduction of such an accumulative component and the relevant government bill. The main advantages of the proposed system of mandatory pension capitalization are highlighted, as well as the main threats that may arise if it is implemented in its original form. Based on the results of the analysis, appropriate conclusions and recommendations were made.

Algorithm based on Decision Trees for the optimal choice of the Peruvian Pension System

This article details how fundamental pension insurance is, taking into account that there are two systems: The Private Pension System (AFP), in which the worker receives what he has received throughout the period he has worked, such as a personal savings account and the National Pension Insurance (ONP), which is a public body that allocates the money contributed by workers (common fund) and is disbursed as a concept of pensions to retirees. Taking into account the problem of the lack of information on Pension Insurance provided by both public and private entities, it was decided to build an algorithm for adequate information and thus achieve relevant decision-making for each worker who accesses the payroll forthe first time or for those who decide to start independently,

(Some) Problems of Shareholder Activism and ESG: The Case of the National Pension Service in Korea

(Some) Problems of Shareholder Activism and ESG: The Case of the National Pension Service in Korea

Analisis Kinerja Keuangan Bank BTPN Selama Masa Pandemik Covid-19 Berdasarkan Rasio RGEC

The purpose of this study was to analyze and determine the financial performance of the Makassar Branch Office National Pension Savings Bank during the Covid-19 Pandemic Based on the RGEC Ratio. The author's choice of topics to see the growth of a bank in the Covid-19 pandemic situation can be seen from the financial performance of the banking itself. this type of research with a descriptive research approach, using the population of BTPN Tbk bank statements, researchers using purposive sampling provided that the financial statements are posted on the Indonesian stock exchange, and during the covid 19 pandemic so that they use the 2020 financial statements. The weight or composite value can be obtained from the division of the total value of the actual composite to the total value of the ideal composite and multiplied by 100%. The calculation results that the composite value of the soundness of the bank PT. The National Pension Savings Bank in 2020 is 86%. First, the risk profile at PT. BTPN bank for the year 2020 shows “Healthy”. Second, GCG at PT. bank BTPN for the 2020 period shows “Good” Third, profitability at PT. bank BTPN for the 2020 period shows a "Very Healthy" condition. Fourth, the capital at PT. Bank BTPN for the 2020 period shows the fifth “Very Healthy” overall PT. Bank BTPN shows a very healthy condition even in the ERA of the Covid 19 Pandemic.

국민연금에 대한 주관적 인식

The purpose of this study is to provide basic data to prepare measures to improve reliability by analyzing subjective perceptions of the National Pension Service. For this purpose, six groups were interviewed according to membership type, age, and gender. As a result of the analysis, it was found that policy non-response to the National Pension Service was mainly caused by misunderstandings resulting from a lack of understanding of the system and anxiety over financial problems. In addition, it was found that there was a lot of consideration for profits such as private insurance products, and there was a lot of concern about the future pension cut. Overall, there is a big gap in perception by generation. For positive perception, the government s guarantee of pension payment is important, and for negative perception, depletion of funds and opaque operation of the system greatly affect negative perception. Accordingly, this study suggested improvement measures such as positive positioning of the system and diversification of public relations.

The Indian National Pension Scheme (NPS): A Retirement System that got even better

The Indian National Pension Scheme (NPS): A Retirement System that got even better

Pension Shortfalls Recovery Techniques in Federal Universities in Nigeria

Ascertaining the extent of pension liabilities at any point in time is a critical erercise that must be undertaken at regular intervals. As contributions to employees' retirement saving accounts (RSAs) are expected to be made monthly, failure to comply by many employers has resulted to pension shortfalls that needs to be determined so that the beneficiaries ofdefined contribution (DC) scheme are not underpaid when they retire. Carrying out this exercise requires sound actuarial models that capture all funds not remitted as well as returns on expected contributions. Mixed method in terms of primary and secondary data were adoptedfor the study. The models developed in this study systematically account for all accruing benefits to employees in which their employers omitted to pay into their RSAs. Specifically. our findings revealed that out of550 employees from the selected institutions. 260 employees are being owed N191,687,720.46. Based on the pension shortfalls estimate, we concluded that the current members of DC with nofunds being remitted to their retirement saving accounts as and when due risk substantial pension wealth for as long as default continues. Consequently, we recommend that the National Pension Commission (NPC) should come to the aid of affected employees by making sure that employers take deliberate step to repay the estimated liabilities and other outstanding liabilities to their RSAs.

National Pension Scheme in India: Functions and Performance

National Pension Scheme is a mandatory for all central and state government employees who joined in services after 2005. Although the scheme is implemented in 2006, most of the government employees are unknown about the benefit of the same scheme. Hence, this paper highlights functions of national pension scheme and performance of pension fund managers in terms of its return in 2020. ANOVA tool is employed for analyzing differences in return by pension fund managers. The study is concluded that HDFC pension fund gives more return other than pension fund.

COVID-19 The Global Pandemic: Learning &amp; Take Out for National Pension System (NPS)

The SARS Cov-2 (Covid 19) pandemic has shaken the whole world; it has brought the business, education, industry, transport, communications, travel, hospitality almost all the economic activities to a standstill. Accordingly, it has adversely affected the financial markets and stock exchanges across the globe. The stock exchanges, may it be New York Stock Exchange, Dow Jones, London Stock Exchange, Nikkei, Bombay Stock Exchange or National Stock Exchange experienced an unprecedented plunge of 40 to 50% in a period few weeks. This new dynamic of volatility possesses serious questions about the market driven National Pension System (NPS) which endeavor to ensure smooth retirement life for Indian elderly. The volatility in security market will significantly impact the fund managers’ performance and accordingly the retirement benefit of the subscriber. This article has investigated the impacts of pandemic on fund manager’s risk returns profile. We have used three industry standard risk-adjusted returns parameters such as Sharpe ratio, Treynor Ratio and Jensen’s alpha to evaluate the performance of NPS pension fund managers selected under study. The study has also explored the learning from such unexpected crisis for the policy makers for future preparedness. On the basis of finding, it has suggested some measures for long run sustainability of schemes under NPS. Keywords : NPS, PFRDA, Defined benefit, Defined contribution, Pension fund managers, Risk adjusted returns, COVID-19.

A Proposed Methodology for Modelling the Solvency of a National Pension Scheme

The main aim of this study is to fit a model for predicting pension liability. The study proposed a stochastic population model to determine the status of a pension scheme. By categorizing the members of the Social Security and National Insurance Trust (SSNIT) pension scheme of Ghana into five groups, the birth and death process with emigration and the pure death process coupled with assumption of the Yule’s process, were combined to successfully formulate a model for forecasting the surplus of SSNIT to be used as a proxy for assessing the solvency status of the scheme. The reliability of the proposed model was corroborated by very high coverage probabilities of the estimates of expected surpluses produced. The study demonstrated how easy it is to use the proposed model to carry out sensitivity analysis which allows the exploration of various scenarios leading to formulation and implementation of policies to enhance the solvency of the scheme. One major advantage of the proposed model is that, it uses more information (variables) compared to others proposed elsewhere for the same purpose. This contributes to the precision of estimates from the model. A key finding of the study is that SSNIT would have still been solvent had she increased pension by 50%.&#x0D;

A Comparative Study on the Financial Literacy of Korean and Japanese College Students

This study compares Korean and Japanese college students financial literacy to identify their relative strengths and weaknesses, as well as subject matters of poor understanding. Overall, Korean students perform significantly better on a financial literacy test than Japanese students. Korean students demonstrate relative weakness on concepts such as insurance, the relationship between education level and income, the source of national pension, credit scores, and cost-benefit analysis. Korean students also struggle with auto insurance coverage and the relationship between interest rates and bond prices. The results suggest that the determinants of financial scores differ significantly between students from the two countries, with some coefficient estimates having opposite signs. For Korean college students, majors in economics or related fields and students with a positive attitude toward money are significantly more likely to be knowledgeable about personal finance. In addition, a family s economic status, reading economic news, math skills, and investment experience are significant predictors of an individual s financial literacy.

Anchoring Effect of Pre-Meeting Vote Disclosures : Evidence from the National Pension Service

Anchoring Effect of Pre-Meeting Vote Disclosures : Evidence from the National Pension Service

Унормування впровадження накопичувального рівня пенсійної системи України

According to the current legislation, the modern Ukrainian pension system is not yet fully formed. In Ukraine, PFC contributions currently form a source of pension benefits for citizens. The solidarity pension system is crumbling . That is, as in the rest of the world, the nation is aging, the share of retirees is growing, and there is less able-bodied population. The search for new ways to save for old age is in the direction of creating a mandatory accumulation under the supervision of the state. Thus, today, a second level of the pension system, mandatory accumulative component, and a rather underdeveloped and unpopular non-state pension system, which forms the third level of the national pension system, do not function. However, in 2020, the work on the concept and bill on the mandatory savings system was intensified. Its introduction is seen as a tool that can increase both the level of pensions and their differentiation. But the world experience of such reforms shows that the real effect on payments from the savings system will have to wait at least 15-20 or even 25 years. The article examines the issue of introducing a funded pension level at the legislative level. According to the results of an expanded analysis of 19 draft laws on reforming the current pension legislation and proposals for new laws on these issues in the period from 2018 to 2021, we can conclude that there is no single concept of amending legislation, so most bills are either withdrawn or sent for further refinement. Currently, various aspects of the pension system of Ukraine are regulated by a large number of legislative acts, so there are signs of dispersion in these draft legislative changes. Most of the bills are developed to enhance the welfare of certain categories of citizens, including servicemen, single mothers, victims of the Chernobyl accident, war veterans and more. The issues of the accumulative pension system are mainly raised in the bills of 2020–2021.

Private Pensions and EU Internal Market Law: Enhancing Retirement Provision through Harmonisation

Pensions, pension policy, and retirement provision has been historically associated with Member States alone. However, this is not so any longer. For years, occupational pension schemes have been brought within the scope of the internal market of the European Union. Extensive judgments from the Court of Justice of the European Union, as well as harmonised legislation from the EU legislature have followed to improve the marketplace for work-related pensions. Today, the market freedoms are now being furthered to cover not just occupational pension schemes, but also, the private pension market. In light of such developments at EU level, including the development of pan-European Personal Pension (PEPP) products, what is evident is a significant shift in the establishment of an EU-wide private pension market, mirroring developments in the United States in what are known as ‘individual retirement accounts’ (IRAs). In light of these EU advances emanating from free movement case law and the PEPP Regulation, with effects for both individual Europeans as future retirees, and financial services undertakings as pension product providers; this article analyses the complementary aspects of both positive and negative integration in the private pension market. The article elaborately demonstrates the significant effect of legal progress, through slow-moving developments, that are collectively contributing to closing the deficit in the retirement provision of Europe’s retirees of the future. EU internal market law, EU free movement law, pension law, private pensions, national personal pension products, PPP, Pan-European Personal Pension Products, PEPP, retirement, harmonisation

Pension Finance Literacy of Indian Government Employees with Respect to the National Pension Scheme

Pension finance literacy of individuals in India is still at a nascent stage owing to low interest and lack of awareness in this sector. The Government of India, in 2004, introduced the National Pension Scheme for government employees in place of the Old Pension Scheme. A survey was done to examine employees’ awareness about the new scheme and understand whether they were aware of the various features of the scheme. The survey included a questionnaire designed specifically for government employees and included questions regarding the scheme’s features and characteristics. Another aim of the survey was to inspect the satisfaction level of the people from the new scheme. The participants included Central and State government employees. Analysis of the results was done using t-test and ANOVA. The effect of demographic variables such as education, gender, income, and marital status on government employees’ pension finance literacy was measured. The results revealed the mixed response of employees. Although a good number of people were found to be aware of the various aspects of the scheme, demographic variables majorly affected the awareness level. Employees were found to be dissatisfied with the scheme’s performance. People wanted some changes in the scheme in aspects such as withdrawal and taxation and generally thought that the scheme was not employee-friendly. Based on the discussion with employees, some suggestions have been put forward so as to make the scheme more alluring.

The Relationship between the National Pension Service's Shareholding and Dividend Propensity: Focus on the Changes since the Stewardship Code

The Relationship between the National Pension Service's Shareholding and Dividend Propensity: Focus on the Changes since the Stewardship Code

The Impact of Continuous Transactions of the National Pension Service on the Investment Judgment of Individual Investors

본 연구의 목적은 국민연금의 연속 매매일 거래가 개인투자자의 투자판단에 영향을 미치는지를 분석하는 것이다. 본 연구는 금융감독원의 전자공시 시스템 오픈 API를 통해, Python Crawling 방식으로 자료를 확보하였다. 그리고 사건연구방법과 고정효과모형을 활용하여 데이터를 분석하였다. 연구결과 첫째, 사건연구에서 국민연금이 연속으로 매수거래를 할 때 시장의 누적 평균 비정상 수익률은 부(-)의 방향을 보임을 확인하였다. 둘째, 국민연금이 연속적으로 매도를 진행할 때 비정상 수익률은 정(+)의 방향을 보임을 확인하였다. 셋째, 회귀분석 결과 국민연금의 연속 매수거래는 개인투자자의 매수거래에 정(+)의 영향을 미치는 것으로 확인되었다. 본 연구의 시사점은 다음과 같다. 첫째, 국민연금은 시장이 하락할 때 반대로 매수하고, 시장이 상승할 때 반대로 매도하기 때문에 시장 안정화 역할을 한다고 볼 수 있다. 둘째, 개인투자자에게 국민연금의 연속 매수거래는 긍정적인 뉴스로 해석될 여지가 있다. 끝으로 국민연금의 연속거래에 관심을 보이는 투자자가 있으므로 연속거래 행태에 대하여 전략 노출 완화방안을 모색할 필요가 있다.