Wharton Pension Research Council Working Papers

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Working Paper

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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? The paragraph above duplicates the opening paragraph of The Case Against Stock in Corporate Pension Funds (Bader 2003), except that we have substituted a governmental plan for a corporate plan. Does this substitution matter?

Working Paper Number


Copyright/Permission Statement

Copyright 2004 by authors.


The authors thank Bruce Cadenhead, Tom Lowman, Bob North, Bill Sohn, and Peggy Warner for their comments and suggestions.

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Economics Commons



Date Posted: 30 August 2019