Public Pension Plan Asset Allocations

Source: Employee Benefit Research Institute, EBRI Notes, Vol. 30, No. 4, April 2009

A new analysis by EBRI shows that, under current accounting rules, underfunded public pension plan sponsors face some perverse incentives to maintain aggressive or risky investments, and that public plan sponsors are unlikely to significantly shift toward safer but lower-return investment policies, at least in the short run.

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