Reforming the Pension Fund Act: Boost Equity Investments and Oversight

This proposal requires pension funds to allocate over 50% of assets to equity—private or public companies—instead of loans. Government debts should carry federal guarantees to protect against inflationary losses. Investments in equity and real estate typically outpace bank interest and remain resilient to currency devaluation. Contributors with significant savings could serve as board directors in companies where the fund holds stakes, earning additional income and strengthening oversight. A dedicated agency should monitor administrators’ expenses to ensure savings go to contributors, not inflated executive pay. Corporate and government debt can be used sparingly, but the focus must shift toward high-growth equity opportunities.

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