Frequently asked questions.

Governance Essentials

  • What are the most common governance structures for public retirement systems

  • What is the typical board size and composition in public pension systems?

  • How do public pension boards assure transparency and accountability?

  • What are the core fiduciary duties of trustees?

  • Is there a forgiveness period?

  • What key powers does a board have to fulfill its fiduciary duties?

Stakeholder Engagement

  • Who are the key stakeholders in public pension and retirement systems?

  • What are the leading practices for stakeholder engagement?

  • What are some of the major challenges in communication and engagement with stakeholders?

  • How are competing stakeholder interests balanced in decision-making?

  • Why is transparency crucial in pension fund management?

  • What governance processes help ensure transparency and accuracy in board communications and disclosures to stakeholders?

Fiduciary Duties & Legal Standards

  • What are the core fiduciary duties of trustees?

  • Who qualifies as a fiduciary under law?

  • What is the legal standard of prudence and diversification?

  • What are prohibited transactions and conflicts of interest?

  • Can fiduciaries consider ESG or non-financial factors?

Conducting Board Business

  • What are the most common governance frameworks and board charters?

  • How should meetings be conducted?

  • How should boards document decisions—minutes, reports, committee overviews?

  • What policies should boards have in place—ethics/conflict rules, communication, fee oversight?

  • How should the board select, evaluate, compensate, and plan for the succession of the executive director/CEO?

  • How should the board evaluate its performance?

  • Why is onboarding and continuing education so important?

Setting Strategic Direction and Policy

  • How should boards develop a strategic, multi-year plan?

  • What policies are essential for board direction (investment, risk, ethics)?

  • How should boards set and update investment policy statements (IPS)?

  • What are the key capabilities public retirement systems will need to be successful?

  • What emerging risks and strategic opportunities should public retirement boards proactively address?

Approving Key Decisions and then Prudently Delegating

  • What decisions typically must be formally approved by public retirement boards?

  • What steps and documentation are needed for boards to demonstrate proper due diligence?

  • How should public pension boards prudently delegate authority to committees and staff?

  • What criteria should boards use when selecting individuals or committees for delegated authorities?

  • What fiduciary risks do boards face if delegation or due diligence processes are inadequate?

Overseeing performance and risk

  • How should boards monitor performance and investment results?

  • What frameworks should boards use for risk oversight (ERM, stress testing)?

  • How frequently should the board review performance and risk reports?

  • What KPIs and metrics should boards use to track the execution of policies?

  • How should boards respond when performance or risk metrics deviate from expectations?

Verifying reliability

  • How does our system assess the effectiveness of its internal controls?

  • What does a compliance audit involve, and how does it verify adherence to regulations within our retirement system?

  • How does our system identify, evaluate, and mitigate risks?

  • Does it use a structured framework?

  • What governance practices help to assure transparency, accountability, and ethical decision-making within our system?