The Irish National Treasury Management Agency (NTMA) has appointed Frank Russell and Watson Wyatt to advise the EUR6.5bn (£3.9bn) National Pensions Reserve Fund (NPRF).
The appointment was subject to the approval of the National Pensions Reserve Fund Commission and follows an international tendering competition. Frank Russell will advise on the selection of the fund’s investment managers and Watson Wyatt will advise on the selection of a transition manager.
The Irish government has committed to putting 1% of annual GNP from tax revenue into the NPRF, and already it is holding IR£5bn. Part of the proceeds of the flotation of Eircom last year have already been put into the fund. There will be no drawdowns on the fund until 2025. After that date, any draw-down will be determined by ministerial rules, subject to the number of people over 65 in the population.
The fund was set up to ensure the State could pay public service and social welfare pensions in years to come. The cost of both types of pension could rise from 4.7% of GNP at present to 12.4% of GNP by the middle of the century.
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