Tag: public pension plan costs
The brief’s key findings are: Public pension plans have lowered their investment return assumptions, which generally raises costs by requiring larger contributions to fund promised benefits. However, the decline in assumed returns is due to lower expected inflation, which should have no effect on costs in an inflation-indexed system. At the same time, plans hav…
Abstract As their populations grow older, the industrial countries face steep increases in public pension costs. If countries change their pension systems in advance of sharply higher pension costs, it is possible to prepare for the added retirement costs by funding a portion of the future liabilities through increased saving. By boosting capital formation and…
