The board of directors of South Korean pension fund Teachers’ Pension has revised the rules of service for its asset management committee to limit consecutive terms by members in an effort to improve the committee’s effectiveness, sources said.

Under the revised rules, committee members may serve for only two consecutive terms, with each term limited to one year. Previously there had been no limit on how many consecutive terms could be served.

The revision came after the Ministry of Economy and Finance’s annual evaluation of pension fund management, which recommended that Teachers’ Pension improve the rules for its asset management committee. A group of experts gave high scores for the fund’s overall organizational structure for asset management, saying that it had dedicated teams and committees in place with proper roles and responsibilities.

“The fund’s rules only state that the committee members can serve consecutive terms without any restriction on how many times they can do so,” said the experts, adding that this could “weaken the independence” of the committee.

The asset management committee is one of four that make decisions about the pension fund’s investment management. It reviews and makes recommendations on topics related to structural changes in investment teams, the development and revision of asset management guidelines and asset management strategies.

Chaired by the fund’s executive director of management, the committee comprises eight members, seven of whom are external experts appointed by the chief executive officer. The rules specify that people with a deep knowledge and experience of asset management, and who are qualified according to presidential decree are eligible.

The other three committees are responsible for risk management, investment and performance evaluation.

Teachers’ Pension had 18.36 trillion won ($16.6 billion) in assets under management at the end of 2019. More than half of its total assets were allocated to equities and fixed income. Alternative investments accounted for 3.89 trillion won, or about 21%, with 1.98 trillion won invested in the domestic market and 1.91 trillion won in overseas markets. (Reporting by Hee-yeon Han)