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A Personal View on the Management System of Public Service Pension Fund in the Republic of China Ko Fei-fung

The Public Service Pension Fund(PSPF) was established on July 1 of 1995. From that time till end of June of 2008, the cumulated average rates of fund investment return was reached to 4.34%. The fund's performance, in general, with having solid operation and good control that caused most participants of the pension plan satisfaction to the sound record. As one of government funds in the country, PSPF investing was always caught by the all media's attention on its market actions. The article was referred to the industry experiences of international pension funds and author's opinion that stress the importance of a well-advised pension fund asset-liability management model. Using fund surplus management can deal with the solvency problems and the funding ratio indicator may support some available options for PSPF to adopt a good management structure. Furthermore, the research on the subject of PSPF management system have been proposed 3 suggestions to the fund administration as following:1. MBPSPF should act as Manager of Managers role in the fund management system. 2. Setting an object with time schedule to improve the status of funding ratio of PSPF. 3.Adopting the investment structure of liability-driven investing by PSPF.

Keywords:Public Service Pension Fund, surplus management, manager of managers, asset liability management, liability-driven investing