Pension Policy Brief Series

Our Public Pensions Policy Brief Series translates and communicates policy relevant economic research on public pension design for elected officials, legislative staff, and other policymakers.

POLICY BRIEF: Risk-taking by Public Pension Funds

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Since 2000, public pension funds have increased the levels of asset risk in their portfolios, principally through their allocations to illiquid assets. Going forward, a stable public pension system requires policy with well-articulated rules for contribution rates, the use of market-based interest rates to value pension obligations, and a clear rule governing funding.

POLICY BRIEF: Understanding Retirement Income Risk

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When workers are solely responsible for their own retirement income, the savings rate should be about 18%. Moreover, investment policy calls for high equity allocations during the early working years and relatively high bond allocations during retirement years.

POLICY BRIEF: Slow Growth is Bad News for U.S. Pension Investors

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Despite the prolonged equity market rally, recent headlines suggest that pension funding continues to be a challenge for U.S. public funds. A long period of below-trend real economic growth could lead to further deterioration in pension funding ratios.

POLICY BRIEF: Pension Reform for Aggregate Welfare

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The security of retirement income is best served by reliance on market pricing mechanisms, funding policies that approximate what individuals would otherwise do, clear metrics to measure progress towards secure retirement, long-term commitment to policies, and transparency about when and how rules could change.

POLICY BRIEF: Lifecycle Portfolio Choice and Pension Design

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The foundation of better pension systems should be, in part, based on lifecycle portfolio choice models. These models provide clear guidance for policymakers on how to promote higher savings rates, foster appropriate investment risk-taking during working years, and encourage an alignment of institutional and individual discount rates.

Close-up of retirement plan documents with a pen and reading glasses resting on them

POLICY BRIEF: Time for a Fresh Look at Pension Design

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Policymakers should be concerned about the ability of many of the world's pension systems to deliver on their promises. It is time to build a new foundation for pension systems using the tools of quantitative economic analysis with aggregate welfare as the evaluation yardstick.

Heller-Hurwicz Economics Institute

Pensions Initiative

Pension Policy Brief Series

POLICY BRIEF: Risk-taking by Public Pension Funds

POLICY BRIEF: Understanding Retirement Income Risk

POLICY BRIEF: Slow Growth is Bad News for U.S. Pension Investors

POLICY BRIEF: Pension Reform for Aggregate Welfare

POLICY BRIEF: Lifecycle Portfolio Choice and Pension Design

POLICY BRIEF: Time for a Fresh Look at Pension Design

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Pension Policy Brief Series

POLICY BRIEF: Risk-taking by Public Pension Funds

POLICY BRIEF: Understanding Retirement Income Risk

POLICY BRIEF: Slow Growth is Bad News for U.S. Pension Investors

POLICY BRIEF: Pension Reform for Aggregate Welfare

POLICY BRIEF: Lifecycle Portfolio Choice and Pension Design

POLICY BRIEF: Time for a Fresh Look at Pension Design

Pensions Initiative