Governance

          InstructionsAnswer all parts of each of the two (2) questions below as completely as possible. Prepare your assignment as a single document.Question 1 (50 marks; one to two pages)Read the scenario below, and then complete the activities that follow it.Governance Plan and ProcessYou are a member-representative trustee of a small pension plan with assets of approximately $25 million. The plan is a defined benefit plan. It is administered by the local office of a large actuarial consulting firm, Pensions R Us, and its funds are invested with a single investment manager, Returns and Co.The Board has decided that now would be a good time to establish more formal processes for running meetings and for reporting requirements. Up until now, the small size of the plan has kept it from receiving much attention from a governance perspective. But at the last few meetings, it was not clear who was to report on what items, and the trustees did not know whether to invite external consultants, investment managers, or administrators to their meetings.Because you have been involved with this plan for the past three years, the board has asked you to put this knowledge to work and to develop a matrix of the roles and responsibilities that will be used to determine the allocation of tasks and responsibilities to all of the parties involved with the plan on a regular or periodic basis.You have been given free rein to create what you believe would be an effective governance system for this group.  Your goal is to develop a working document for discussion at the next meeting of trustees. Because your governance system will require eventual consensus from the various parties, your allocations must be defensible.Based on the above information, your knowledge of the various parties who might be involved, your opinion of the types of duties required of the plan’s fiduciaries, and your view on the tasks that may be delegated, develop a one to two-page matrix that clearly shows the following hierarchy of delegation of authority and roles in the governance process:• Approve action• Recommend action• Report on action• Perform task________________________________________ Question 2 (50 marks; approximately350 words)Based on the documents you developed for question 1, prepare a one-page summary and rationale for your governance system that explains:• Your rationale for your proposed allocation of roles and responsibilities.• Your estimation of the parties who may object to your proposed allocation, their possible objections, and your proposed responses to their concerns.