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Research

Cost shifting and the freezing of corporate pension plans

This paper, which examines the impact of the trend in the US of corporate funds freezing their defined benefit funds and offering defined contribution plans, shows that net of the increase in total DC contributions, firms save 2.7-3.6 per cent of payroll per year, and over a 10-year horizon they save 3.1 per cent of […]
Amanda WhiteApril 24, 2014
Investment Think Tanks

PE LPs overweighting home-state is hurting returns

New research finds institutional investors favour investing in private equity general partners that are located in the same state as their organisation. This is intuitive as local knowledge and contacts attract investments. However research from Stanford University finds this bias is coming at a large cost – about $1.2 billion a year – particularly for […]
Amanda WhiteFebruary 12, 2014
Research

Are state public pensions sustainable?

Assuming future state contributions fund the full present value of new benefits, many US state systems will run out of money in 10-20 years. This paper argues the expected shortfalls raise the possibility that the federal government will be faced with a decision whether to bail out states driven to insolvency by their pension programs.
 June 22, 2011