Public Pension Governance, Funding, and Performance: A Longitudinal Appraisal

40 Pages Posted: 13 Jul 2005

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

Tongxuan Yang

University of Pennsylvania - Insurance & Risk Management Department

Date Written: 2005

Abstract

Pension plans covering US public sector employees now face the twin challenges of poor asset returns and rapid increases in liabilities, producing the worst pension funding outcomes in decades. This paper explores how public pension plan investment performance and funding is related to several structural and pension design features. Using a new longitudinal dataset on state and local public pension plans, we evaluate how investment performance is tied to stock funding ratios and how stock funding ratio in turn affects flow funding efforts. We find that articular governance structures can enhance public pension plan investment performance and funding status, and we suggest ways in which public plan design might be improved.

Suggested Citation

Mitchell, Olivia S. and Yang, Tongxuan, Public Pension Governance, Funding, and Performance: A Longitudinal Appraisal (2005). Pension Research Council WP2005-2, Available at SSRN: https://ssrn.com/abstract=755045 or http://dx.doi.org/10.2139/ssrn.755045

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

3302 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Tongxuan Yang

University of Pennsylvania - Insurance & Risk Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6365
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
417
Abstract Views
3,214
Rank
128,241
PlumX Metrics