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Background
The Social Pension Fund (SPF) was established in 1970 by the Social Pension Fund Act, whereby a special national retirement pension contribution was introduced. The proceeds were allocated to SPF and invested in bonds. With effect from 1982 the Act was amended, and the payments to SPF ceased. SPF continued as an asset of the central government.
Management
SPF is part of the remit of the Ministry of Employment and the Ministry of Finance. The governance of SPF's capital is handled by a committee with representatives from the Ministry of Finance, the Ministry of Employment and Government Debt Management at Danmarks Nationalbank. The day-to-day management of the Social Pension Fund is delegated to Government Debt Management.
 The principles for the management of SPF's capital are set out in a regulation. The regulation states that the aim is to achieve a satisfactory return on SPF's assets while taking due account of the overall budgetary consequences of SPF's transactions.
It is sought to ensure that SPF's purchases are made without significantly affecting the formation of interest rates in the bond market. |
