The trouble with pensions: Toward an alternative public policy to support retirement

Bericht

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.

Object Details

• ISBN: 978-1-936192-05-2
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Public Policy Brief ; No. 109

Classification and Topics

• Classification: Wirtschaft
• Subject: Rentenfinanzierung ; Pensionskasse ; Bankenaufsicht ; Gläubigerschutz ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nersisyan, Yeva ; Wray, L. Randall
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/54273
• Last update: 10.03.2025, 11:42 AM CET