Between Scylla and Charybdis: Improving the Cost Effectiveness of Public Pension Retirement Plans
The published version of this Working Paper may be found in the 2009 publication: The Future if Public Employee Retirement Systems.
Unless defined benefit pension plans are managed much better and more cost-effectively, they will be replaced by defined contribution plans. Benefit and contribution policies need to be carefully evaluated to make sure that a reasonable level of ongoing contributions, together with investment income, are adequate to fund the defined benefit plan without unpleasant surprises. Unless valuation and contribution conventions change to market-valued economically-based quantities, decision makers will lack the right information with which to make informed policy decisions.
Date Posted: 09 August 2019