Public Funds

Pension Finance Resources (Home) Page | Key Points | Changes Needed in Actuarial Practice | Accounting | Funding | Investments | Plan Design | Public Funds | Views of Others

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

• Risk Transfer in Public Pension Plans

This paper uses arbitrage principles to show that equating expected costs unfairly lowers risk-adjusted costs for early generations and raises them for later generations.

• The Case Against Stock in Public Pension Plans

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?