Tag: Railroad Retirement program
Abstract The experience of the reformed Railroad Retirement program has lessons for initiatives that would invest Social Security assets in equities: To address the risk in equity investment, Congress would likely require an automatic adjustment mechanism to keep the program “on track.” The adjustment mechanism should address surpluses as well as shortfalls, and cannot b…
Abstract The primary concern of Congress in enacting the Railroad Retirement and Survivor’s Improvement Act of 2001 was the risk of political influence on investment decisions. A secondary concern was the financial performance of the redesigned program. The experience to date supports the notion that reforms created an exemplary manager of public pension assets, fr…