Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54273
Authors: 
Nersisyan, Yeva
Wray, L. Randall
Year of Publication: 
2010
Series/Report no.: 
Public policy brief // Jerome Levy Economics Institute of Bard College 109
Abstract: 
Pension funds have taken a big hit during the current financial crisis, with losses in the trillions of dollars. In addition, both private and public pensions are experiencing significant funding shortfalls, as is the government-run Pension Benefit Guaranty Corporation, which insures the defined-benefit pension plans of private American companies. Yeva Nersisyan and Senior Scholar L. Randall Wray argue that the employment-based pension system is highly problematic, since the strategy for managing pension funds leads to excessive cost and risk in an effort to achieve above-average returns. The average fund manager, however, will only achieve the risk-free return. The authors therefore advocate expanding Social Security and encouraging private and public pensions to invest only in safe (risk-free) Treasury bonds - which, on average, will beat the net returns on risky assets.
ISBN: 
978-1-936192-05-2
Document Type: 
Research Report

Files in This Item:
File
Size
894.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.