Key Points

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(Note: Where available, an online link to the resource is provided; in some cases, we are only able to provide the reference information)

• The Case Against Stock in Corporate Pension Funds

(Bader, Lawrence N., Pension Section News, Issue No. 51 (February 2003), pp. 17–19, Schaumburg, IL: Society of Actuaries)
A company has $1 million of stock in a pension fund. The liability can be matched with a $1–million dedicated bond portfolio. This article looks at the consequences of shifting the pension fund from stock to bonds.

• The Case Against Stock in Public Pension Funds

A government has $1 million of stock in a pension fund that covers its employees. The liability can be matched with a $1–million dedicated bond portfolio. What are the consequences of shifting the pension fund from equities to bonds?

• Pension Forecasts, Part 2: The Model Has No Clothes

(page 14)
This article addresses a simplified problem in pension plan financing and examines two questions about how that pension plan can be modeled.

• Pension Deficits: An Unnecessary Evil

This paper looks at how financial economics calls for fully funding and immunizing accrued pensions.

• Pensions and Capital Structure: Why Hold Equities in the Pension Fund?

Presented at "Current Pension Actuarial Practice in Light of Financial Economics Symposium" in June 2003, this paper considers the pension plan as part of the capital structure of the sponsoring employer.

• Reinventing Pension Actuarial Science

(page 4)
The 1974 passage of ERISA revealed fundamental flaws in the actuarial pension model. This article explores those flaws and the injuries they cause.

The Risk of Stocks in the Long Run
This paper examines the proposition that investing in common stocks is less risky the longer an investor plans to hold them.

• What's next?–DB plans for the long run

(page 1)
Is the age of the Defined Benefit (DB) plan over? This article explores the question.