A real-world look at the pension revolution underway The Future of Pension Management offers a progress report from the field, using actual case studies from around the world. In the mid-70s, Peter Drucker predicted that demographic dynamics would eventually turn pensions into a major societal issue; in 2007, author Keith Ambachsheer's book Pension Revolution laid out the ways in which Drucker's predictions had come to pass. This book provides a fresh look at the situation on the ground, and details the encouraging changes that have taken place in pension management concepts and practices. The challenges identified in 2007 are being addressed, and this report shows how design, management, and investment innovation have led to measurably better pension outcomes. Pensions have become an everyday news item, and people are rightly concerned about the security of their retirement in light of recent pension scandals and the global financial crisis. This book provides a note of encouragement, detailing the ways in which today's pensions are becoming more and more secure, and the new ideas and practices that are chipping away at the challenges. * Learn how pension management practices are improving * Examine the uptick in positive outcomes over recent years * Discover why pension investing is turning toward the long-term * Consider the challenges that remain and their possible solutions Drucker's vision of a needed pension revolution is unfolding in real time. Better pension designs, more effective pension governance, and more productive pension investing are mitigating many of the issues that threatened collapse. The Future of Pension Management provides a real-world update on the state of pensions today and a look forward to the changes we still need to make.

Praise for "Pension Revolution"

"When Keith Ambachtsheer puts his keen mind to work on a problem, watch out! Here he exposes today's fragile arrangements for the most serious social dilemma of our times--financing retirement. Then he provides a compelling and powerful set of solutions. His writings are essential reading for all who care about the future of American living standards."
--Peter Bernstein, founder and President, Peter L. Bernstein, Inc., and author of "Capital Ideas and Against the Gods"

"This book describes one of the most ingenious inventions in the history of mankind: pension funds offering credible promises about old-age income. It reads like a thriller: how can well-governed pension funds be created in an imperfect world in which mortals wrestle with foibles and moral shortcomings? One of the world's leading experts on pensions searches for the answer--and finds it."
--Lans Bovenberg, Scientific Director, Network for Studies on Pensions, Aging, and Retirement, Tilburg University, The Netherlands

""Pension Revolution" exposes the inadequacies of current pension systems and persuasively makes the case for the fundamental changes that are needed. It is essential reading for both the pension industry and policymakers."
--Elizabeth Bryan, Chair, Investment Committee, Unisuper Management PM Ltd, Australia

"Most analyses of complicated issues deal with complexity by simplifying or only looking at one piece-part, and, in doing so, provide limited value. In stark contrast, Keith Ambachtsheer boldly wades into the complexity in "Pension Revolution" to come up with a valuable integrative solution. He is a most welcome revolutionary!"
--RogerMartin, Dean, Joseph L. Rotman School of Management, University of Toronto, Canada

"We have known Keith for over ten years, and consistently over that time, he has constructively and comprehensively challenged conventional wisdom. He has done this so effectively that many of his initial thoughts have now become universally accepted norms. Such is his energy however that he continues to push the boundaries of pension and investment thinking."
--Peter Moon, Chief Investment Officer, Universities Superannuation Scheme Ltd, UK

""Pension Revolution" not only explains the shortcomings of the existing pension system and the underlying design features that have resulted in the current pension upheaval. It also offers thoughtful and creative suggestions for prospective pension design. A must-read for anyone interested in the future of retirement finance."
--James Poterba, Professor of Economics, Massachusetts Institute of Technology and a member of the TIAA-CREF Board of Trustees

"This is a landmark book on pension fund management. All those with a stake in building pension wealth will profit from this commonsense and clearly readable guide to improved pension fund performance." —Burton G. Malkiel author of A Random Walk Down Wall Street and Chemical Bank Chairman's Professor of Economics, Princeton University.

"This is not just another book of theory about how pension funds should be managed, or about how one expert thinks an appropriate asset allocation should be determined. . . . There is keen analysis by Messrs. Ambachtsheer and Ezra, both of whom are veteran pension consultants noted for thinking outside the box." —Michael J. Clowes, Editorial Director Pensions & Investments.

"Keith Ambachtsheer and Don Ezra, two leading consultants, have written the most comprehensive handbook ever published on pension fund management. It's must reading for all those in a fiduciary role." —W. Allen Reed, President General Motors Investment Management Corp.

"Don Ezra and Keith Ambachtsheer are two of the best thinkers in the world of pension fund management. All who care about retirement assets will learn valuable lessons from their new book." —Charles D. Ellis, Managing Partner Greenwich Associates.

". . . powerful, authoritative, and provocative critique of a subject that concerns all of us . . ." —Peter L. Bernstein, President Peter L. Bernstein, Inc. author of Against the Gods: The Remarkable Story of Risk.

No longer obscure investment vehicles, pension funds have stepped out of the shadows and into the global spotlight. More and more, they are being seen as special financial institutions that need to create value for their millions of members and employers around the world. With assets close to $12 trillion—$7 trillion in the United States alone—pension funds are dominant players in financial markets and in corporate governance.

Yet they continue to be misunderstood and are often poorly managed. As advisors to many of the world's premier pension funds, Keith P. Ambachtsheer and D. Don Ezra have an international reputation as experts in the field. Now, their combined talents and experience yield a timely and thorough book on effective pension fund management. Pension Fund Excellence presents a guiding paradigm for articulating a fund's mission and for what needs to be done to accomplish it.

Along the way, the authors provide new insights on fundamental issues. What key elements integrate pension fund governance, management, and operations? What decision structure does an excellent pension fund organization use? What do the best decision-makers know about fiduciary responsibilities, pension economics, and the markets for financial capital and investment management services? What policies do they adopt? How do they measure results and tie results to compensation? How should small funds face their special challenges?

Their advice is made practical through real-world case studies that focus on the best practices employed by the world's premier pension funds. Their clear focus is on creating value for stakeholders.

Finally, Pension Fund Excellence looks beyond today, offering the authors' incisive views on three critical pension issues for the twenty-first century: the rise of defined contribution plans, fixing "broke" national social security schemes, and the growing economic power of pension funds.

Written by two leading authorities, Pension Fund Excellence contains the most up-to-date, insightful, practical information and advice available on this now hot topic. It is must reading for anyone seeking effective, proven management principles and techniques to create value for pension fund stakeholders.