Go TO Content

2018 Operational Highlights

●To safeguard the financial soundness of the fund, following pension reforms and subsequent regulatory amendments, the Supervisory Board will continue to monitor the Management Board in terms of budget planning and management of fund contributions and payments.

● In response to changes in both domestic and overseas financial markets, the Supervisory Board worked with the Management Board to review draft amendments to the Public Service Pension Fund Management Act and the Regulation for Discretionary Management of Public Service Pension Fund and revised guidelines for investment in time deposits, overseas and domestic bonds, domestic listed / OTC stocks, domestic ETFs, and foreign private investment funds. In addition, the Supervisory Board completed the review of the Management Board’s guidelines for pension payments by the new system. All these tasks are aimed at enhancing the effectiveness of fund investment and operations.

● The Supervisory Board issued Supervisory Weekly Reports to keep track of the impact on the value of the overall portfolios caused by domestic and overseas financial market developments and major political and economic events. In addition, we analyze issues in major international financial topics, such as the US-China trade war, to provide points of reference during supervisory operations. ● In addition to conducting monthly and quarterly performance reviews, the Supervisory Board urged the Management Board to present review reports on poor investments or areas that needed to make improvements whatever necessary in an effort to further improve the Fund performance evaluation system.

● In light of the expansion of its overseas investment, and more involvement with alternative investment, the Fund’s accounting tasks have become increasingly complex. To ensure the fair presentation of Fund financial statuses and management results, the Supervisory Board continues to review monthly financial reports, conduct year-end audits, and so monitor all measures in compliance with accounting system. In addition, it has continued to follow up on the Management Board’s adoption of the IFRS in order to make sure its accounting system is in line with international practices.

● The Supervisory Board attended the Fund’s seventh actuarial task force meetings and progress report review meetings and presented its view points on actuarial assumptions including discount rate and participant lapse rate, as well as cashflow forecasts.

● The Supervisory Board conducted research into the setting up and use of an e-supervision platform for the Fund and the adoption of ESG investing by pension funds. While the former was aimed at enhancing operational efficiency and information transparency, the latter examined ESG investing practices by international pension funds, which served as a valuable source of reference.