Public Pensions and Market Value of Liabilities

Source: Keith Brainard, National Association of State Retirement Administrators, White Paper,
July 21, 2008

This paper explores the use of market value of liabilities (MVL) in the context of public pension plans, including whether or not public pensions should be required to disclose this figure; the source of efforts to require this disclosure; and the effects this disclosure might have. The paper presents evidence that MVL is based on a corporate finance model that is poorly suited to the unique environment of public sector pensions.

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