About NAF
The NCPERS Accredited Fiduciary (NAF) Program is an accreditation program specifically designed and tailored for individuals involved in public pension governance. Divided into two parts, NAF 1&2: Governance & Finance and NAF 3&4: Risk Management & Human Capital, participants who complete the program have the opportunity to earn their Accredited Fiduciary (AF) designation, signaling their expertise in these critical areas.
In a small classroom setting, trustees and staff dive into the key topics and strategies needed for effective governance and oversight of a public pension fund. The program is held twice per year (in the spring and the fall). It is recommended that new trustees and staff complete NCPERS Trustee Educational Seminar (TEDS) to master fiduciary fundamentals before attending the NAF program.
Below, you’ll find an overview of what you’ll learn throughout the program.
In a small classroom setting, trustees and staff dive into the key topics and strategies needed for effective governance and oversight of a public pension fund. The program is held twice per year (in the spring and the fall). It is recommended that new trustees and staff complete NCPERS Trustee Educational Seminar (TEDS) to master fiduciary fundamentals before attending the NAF program.
Below, you’ll find an overview of what you’ll learn throughout the program.
MODULE 1 & 2: GOVERNANCE AND FINANCE
In Module 1 – Governance, participants explore the foundational responsibilities, accountabilities, and governance models that guide a public pension board. This module emphasizes the importance of a high-functioning board culture and addresses key questions about the proper level of board activity, the board’s role in setting strategy and direction, and best practices for attracting and retaining top board talent. By clarifying how board culture directly impacts governance outcomes, Module 1 empowers participants to navigate complex oversight challenges while steering their organizations toward long-term success.Building on these governance principles, Module 2 – Finance focuses on the financial expertise required for prudent fund management. Attendees learn how to access and interpret the essential information needed to make informed financial decisions, ensuring their funds remain compliant with investment policies, performance benchmarks, and disclosure standards. Participants also delve into the board’s responsibilities for setting investment policies, allocating assets, mitigating risk, and overseeing transparent financial reporting. Through these two modules, attendees develop a holistic view of how strong governance structures and strategic financial oversight work hand in hand, enabling them to serve confidently, protect stakeholders’ interests, and foster the growth and stability of their public pension funds.
Learning Objectives
- Understanding the roles, responsibilities and accountabilities of your public pension board as well as the differing governance models and principles that exist.
- Learn how to become a “high functioning board”.
- Understand what you as a director need to know and how to access the required information to make informed financial decisions.
- Learn about proper administration of your fund’s investments, ensuring compliance with investment policies, performance management, and adequate reporting.
- How active should your board be?
- How does your board culture impact your effectiveness to govern?
- What is your board’s role in setting strategy and direction?
- How do you attract and retain top talent to your Board?
- What is the board’s administration and management roles in establishing an investment policy, allocating assets, and mitigating investment risk?
- What is the board’s role in ensuring compliance with financial/investment policies?
- How do you maintain compliance in your fund’s financial reporting and disclosure?
MODULE 3 & 4: RISK MANAGEMENT & HUMAN CAPITAL
Modules 3 & 4: Risk Management & Human Capital offer a robust exploration of two critical areas for pension trustees and staff. In Module 3: Risk Management, participants deepen their understanding of the legal and risk oversight duties expected of both their board and themselves as individual trustees. This module examines the board’s fiduciary responsibilities, including how to detect and protect against fraudulent behavior, manage relationships with external parties, and effectively communicate with a diverse range of stakeholders such as management, pensioners, and employees. Additionally, it highlights the audit committee’s essential roles and provides strategies for responding to media inquiries while preserving your organization’s corporate reputation.
In Module 4: Human Capital, the focus shifts to building and sustaining leadership through sound compensation practices and strategic human resource management. This module guides participants through the fundamentals of total executive compensation design, including the creation of defensible compensation programs and the establishment of a pay-for-performance culture that maximizes fund performance. Participants will learn how to craft executive employment contracts and personal service agreements that avoid pitfalls and support positive growth transitions. Moreover, Module 4 offers insights into developing and maintaining a skilled executive pipeline, ensuring that your board is well-equipped to lead the organization into the future.
Together, Modules 3 & 4 provide the tools and knowledge necessary to manage risk effectively and cultivate human capital, reinforcing your board’s ability to oversee and drive the strategic direction of your organization.
Learning Objectives
- Understand the legal and risk oversight duties of your board as well as your own as an individual trustee.
- Understand the roles and responsibilities of the audit committee.
- Learn about responding to media and the importance of your corporate reputation.
- Learn how to engage in effective stakeholder communication.
- Understand the fundamentals of total executive compensation design.
- Learn about the use of compensation strategies and performance management plans to guide behavior and maximize fund performance.
- Learn how to ensure that employment contracts and service agreements avoid pitfalls and facilitate positive growth transitions.
Answers the Questions
- What are you and your board’s fiduciary duties related to legal and risk oversight?
- How does your board spot and guard against fraudulent behavior?
- How should your board manage relationships with external parties?
- How can your board effectively communicate with stakeholders (management, pensioners, employees)?
- How does a board establish a defensible compensation program?
- What is your board’s role in establishing a pay-for-performance culture?
- What are the key elements within executive employment contracts and personal service agreements?
- How can your board develop and maintain a skilled executive pipeline for the future?
For more information on obtaining your accredited fiduciary (AF) designation, CLICK HERE.