Vittas, Dimitri2012-05-242012-05-242008-02https://hdl.handle.net/10986/6367The Danish ATP (Arbejdmarkedets TillaegsPension or Labor Market Supplementary Pension) fund is a public pension fund that was created in 1964 to complement the universal pension benefit that is financed from general tax revenues and is paid to all old-age residents. When it was created, participation in ATP was compulsory on most working people. But over the last decade or so compulsory coverage has been expanded to most recipients of transfer income. Contribution amounts are set in absolute terms, but are low relative to earnings (less than 1 percent of average earnings). ATP has benefited from scale economies and compulsory worker participation and has been able to operate with high efficiency and low costs. Its investment performance has been uneven over the years, reflecting the applied investment policies and rules as well as prevailing financial conditions. In recent years, it has been a leader among Danish pension institutions in adopting innovative investment policies and has enjoyed an enviable record of high investment returns and low operating costs. In addition, it has long offered deferred group annuities with guaranteed benefits and periodic bonuses (with profits policies). However, ATP also suffers from several weaknesses and shortcomings. It has a cumbersome governance structure, rooted in labor market relations and the role of social partners, while its group annuities have been based on rather 'idiosyncratic' risk-sharing arrangements. Nevertheless, it took the lead in using long-dated interest-rate swaps in euro markets and recently created a department that specializes in hedging its pension liabilities. And it is in the process of adopting a new plan for guaranteed benefits that aims to enhance the management of both investment and longevity risks.CC BY 3.0 IGOABSOLUTE AMOUNTSACCOUNT HOLDERSACCOUNTINGACCOUNTING RULESALTERNATIVE ASSETANNUAL CONTRIBUTIONANNUAL RATE OF RETURNASSET ALLOCATIONASSET ALLOCATIONSASSET CLASSASSET CLASSESASSET MANAGEMENTASSET MANAGERSAVERAGE EARNINGSAVERAGE EXCHANGE RATEBALANCE SHEETBASIS POINTSBENEFICIARYBENEFIT PLANBONDBOND ISSUERSBOND PORTFOLIOBOND PORTFOLIOSBONDSBUDGETINGCALCULATIONCALCULATIONSCAPITAL GAINSCONFLICT OF INTERESTCONSUMERCONTRIBUTIONCONTRIBUTION RATECONTRIBUTIONSCORPORATE GOVERNANCECOST RECOVERYCREDIT INSTITUTIONSCURRENCYCURRENCY HEDGINGCURRENCY RISKDEFERRED ANNUITIESDEFERRED ANNUITYDISABILITYDISABILITY PENSIONSDISCOUNT RATEDISSEMINATION OF INFORMATIONDIVERSIFICATIONDOMESTIC BONDDOMESTIC BONDSDOMESTIC EQUITIESDOMESTIC MARKETDOMESTIC SECURITIESEARLY RETIREMENTEARNINGSELECTRONIC FUNDEMPLOYER PENSIONEQUITIESEQUITY MARKETSEQUITY PORTFOLIOEURO MARKETSEXCESS RETURNSEXPOSUREEXPOSURESEXTERNAL ASSETFINANCIAL DEVELOPMENTSFINANCIAL IMPACTFINANCIAL MARKETSFINANCIAL POLICYFINANCIAL POSITIONFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL SYSTEMSFIXED ANNUITYFIXED BENEFITFOREIGN CURRENCYFOREIGN EQUITIESFUTURESGOVERNMENT BONDSHEDGESHOLDINGSINCOMEINDIVIDUAL ACCOUNTSINFLATIONINFLATION RATEINFORMATION SYSTEMSINSTITUTIONAL INVESTORSINSURANCEINSURANCE PREMIUMSINTEREST RATEINTEREST RATE CHANGESINTEREST RATE SPREADINTEREST RATE SWAPSINTEREST RATESINTERNAL CONTROLINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL DIVERSIFICATIONINTERNATIONAL INTERESTINTERNATIONAL MARKETSINVESTINGINVESTMENT ASSETSINVESTMENT BEHAVIORINVESTMENT COMPANYINVESTMENT EXPENSESINVESTMENT FIRMINVESTMENT FUNDINVESTMENT INCOMEINVESTMENT INSTITUTIONINVESTMENT PERFORMANCEINVESTMENT POLICIESINVESTMENT POLICYINVESTMENT PORTFOLIOINVESTMENT RATEINVESTMENT RETURNINVESTMENT RETURNSINVESTMENT STRATEGYLABOR MARKETLEVEL OF CONTRIBUTIONSLEVELS OF RISKLIABILITYLIFE EXPECTANCYLIFE INSURANCELIFE INSURANCE COMPANIESLIFETIMELIMITED PARTNERSHIPSLOCAL MARKETLOW COSTSLUMP SUMLUMP SUMSMACROECONOMIC PERFORMANCEMALFEASANCEMARKET CONDITIONSMARKET INDEXMARKET RETURNSMARKET VALUATIONMARKETINGMATURITIESMATURITYMINIMUM BENEFITSMORTGAGEMORTGAGE BONDSMORTGAGE CREDITMUTUAL FUNDSNORMAL RETIREMENT AGEOCCUPATIONAL PENSIONOCCUPATIONAL PENSION COVERAGEOCCUPATIONAL SCHEMESOLDER WOMENOTHER ASSETSPENSIONPENSION BENEFITPENSION BENEFITSPENSION FUNDPENSION INCOMEPENSION ISSUESPENSION LIABILITIESPENSION PLANSPENSION POLICYPENSION PROVIDERPENSION RIGHTSPENSION SAVINGSPENSION SCHEMESPENSION SYSTEMPENSIONABLE AGEPENSIONERSPENSIONSPERSONAL PENSIONPERSONAL PENSION PLANSPERSONAL SAVINGSPOOR INVESTMENTPORTFOLIO MANAGERPORTFOLIOSPRIVATE EQUITIESPRIVATE EQUITYPRIVATE PENSIONPRIVATE PENSION FUNDSPRIVATE PENSIONSPUBLIC ACCOUNTABILITYPUBLIC PENSIONPUBLIC PENSIONSRATE OF INFLATIONRATE OF INTERESTRATE OF RETURNRATES OF RETURNREAL ESTATERECORD KEEPINGREPLACEMENT RATERESERVESRESPONSIBILITIESRETIREDRETIRED WORKERSRETIREMENTRISK MANAGEMENTRISK SHARINGSALARYSECURITIESSENIORSHARE OF EQUITIESSHAREHOLDERSHAREHOLDER RIGHTSSHAREHOLDERSSOCIAL SECURITYSOCIALLY RESPONSIBLE INVESTMENTSSUPERVISORY BOARDSWAPSWAPSTAXTRADE UNIONSTRADINGTRANSFER PAYMENTSTRANSPARENCYTRUSTEESUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT BENEFITSUSE OF DERIVATIVESVALUATIONVALUE OF CONTRIBUTIONSVALUE OF PENSIONVALUE OF PENSIONSVOLATILITYWAGEWAGE GROWTHWHITE-COLLAR WORKERSYIELD CURVEYOUNGER COHORTSWorld Bank10.1596/1813-9450-4505