Pension governance concerns a multitude of administrative and operational issues regarding a pension plan and its investment strategy. Its primary maxim largely revolves around responsibility, and how it is delegated to individuals. A key objective of good governance is ensuring the structural integrity of a pension plan.
There is an intrinsic link between good governance and the performance of a pension plan. One affects the other – a plan is less likely to experience solid growth without the pillars of good governance in place. Good governance is the bedrock of a well-run pension plan.
It is important for the long-term stability of a plan. Good governance assists in the minimising of risk and the maximising of opportunities for a plan and its members and beneficiaries.
