Introduction

Punjab Pension Fund, a body corporate, was formed after the promulgation of Punjab Pension Fund Act in 2007. The purpose of the Fund is to generate revenue for the discharge of pension liabilities of the Government.

According to Policy Research Working Paper 4499 of The World Bank, Financial Systems Department, Financial Policy Division, January 2008, "Public Pension Funds have the potential to benefit from low operating costs because they enjoy economies of scale and avoid large marketing costs. But this important advantage has, in most countries, been dissipated by poor investment performance. The latter has been attributed to a weak governance structure, lack of independence from government interference, and a low level of transparency and public accountability". The governance structure of the Punjab Pension Fund has been designed to avoid these very pitfalls. It has a proper governance structure as would be envisaged in the light of contemporary best practices in the pension fund industry around the Globe.

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