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Definition: National Pensions Reserve Fund
The National Pension Reserve Fund (NPRF) is public pension fund set up by the government of Republic of Ireland in 2001. The government makes contribution equivalent of 1% of Gross National Product to the funds in every year. The major objective of establishing this pension fund is to meet the social welfare and public service pension needs of Republic of Irelands form 2025 onwards and so no withdrawal can be made before 2025. The above said costs are estimated to raise dramatically due to an ageing population in Republic of Ireland.
According to the NPRF and Miscellaneous Provisions Act 2009, the commission also makes investment in credit institutions after direction with Ministry of Finance in consultation with consultation from the Governor of Central Bank and Financial Regulator. In view to prevent the collapse of the financial stability in the country in any event of serious disturbance to the economy such a measure had been through upon. NPRF has also invested in Government securities on the directions from the ministries, which were channelized to fund the capital investment by government.
2013 was critical year as the Irish Government has asked the NPRF to embark in the process of increasing domestic investment and hence renamed it to Ireland Strategic Investment Fund. Presently the 2 most important portfolio: 1) the discretionary portfolio (responsibility of the commission) generally invests in bonds and equities, real estate and private equity by the help of external fund managers. 2) The directed investments which are typically guided by the ministry of finance.