PSTP Aims for Double-Digit Returns for Fourth Year... AI to Drive Fiscal Stability and Risk Management

Average Annual Return of 14.67% Over the Past Three Years

The Private School Teachers' Pension (PSTP) is aiming for a double-digit return for the fourth consecutive year. In addition, the organization plans to actively utilize artificial intelligence (AI) across all work processes, not only for profit and risk management but also for customer relations.

Sung Hajung, Chairman of the Private School Teachers' Pension

On January 30, the PSTP announced through its 2026 New Year business report that its core tasks include securing fiscal soundness, enhancing services using AI, and expanding welfare throughout the life cycle.

The PSTP completed its sixth actuarial review last year and is planning to establish a long-term fiscal stabilization roadmap looking ahead fifty years. In particular, the organization will overhaul its systems, such as supplementing the early pension payment system for school closures, and will focus on minimizing delinquency rates across all areas-including contributions, benefit recovery, and living expense loans-in order to reduce the average delinquency rate to below 0.7% and prevent fund losses.

In terms of fund management, the PSTP achieved double-digit annual returns (an average of 14.67% per year) for three consecutive years (2023-2025), and has set a goal of maintaining a double-digit return this year as well. The organization will develop optimal asset allocation strategies based on AI and asset-liability management (ALM), and will introduce AI early warning indicators to further strengthen risk management capabilities. Additionally, the organization plans to expand the proportion of ESG investments to 5.7%, continuing its commitment to responsible investment.

The PSTP is also working to introduce a new “job search support fund” system for retired teachers preparing for reemployment. This initiative aims to ease the financial burden of job searching due to involuntary retirement and to support successful planning for a second career.

Furthermore, the organization will fully implement the “AI Safety Care Call” service for recipients living alone and will build a digital claims system at all points of contact to enhance customer convenience. The PSTP also plans to strengthen financial benefits for members by upgrading loan agreements with commercial banks and expanding the eligibility for the “Happiness Sharing Loan.”

Sung Hajung, now in his third year as Chairman, stated, “2026 will be the year that firmly establishes the fiscal sustainability of the PSTP, and marks the beginning of tangible welfare services-such as the job search support fund and AI-driven innovations-that teachers can truly experience. As the nation’s leading pension institution, we will build a fund that earns the trust of both the public and our members.”

This content was produced with the assistance of AI translation services.