Public Pension Funds
Source: Paisley, Kathleen. “PUBLIC PENSION FUNDS”, 4 Yale Law & Policy Review 188.
- Conflicts of interest arise in:
- Personal interest in a transaction involving fund assets
- Divergent interests of the various beneficiaries
- Duty of the Trustee to the beneficiaries and to other interests
- Public pension fund trustees must:
- Act with strict fiduciary loyalty to participants and beneficiaries
- Administer the funds prudently
- Tax sanctions are not an effective means of regulation
- Federal tax regulations harm the plan participant rather than the sponsor