The author, a thought leader in the pension industry, covers a broad spectrum of pension management topics. He focuses on changes the industry needs to make in order to overcome its challenges — in particular, its failure to achieve its goals of affordability and retirement security. The solutions already exist; the problem is one of implementation.
What's the secret formula behind the Canadian public pension fund model? Are its strategies applicable in other contexts? A panel of experts recently weighed in.
Keith P. Ambachtsheer, long an outspoken advocate for pension reform, gave a sober assessment of the state of the world’s workplace retirement plans, praising the relative strength of plans in northern Europe while declaring those in southern Europe to be a “disaster.”
When clients ask you whether the hodgepodge of social security programs, private savings accounts, and employer-sponsored retirement plans that we collectively rely on will be sufficient to provide them with a comfortable living after they stop working, you probably have an easy answer at the ready. "Ha!"
Whether in political history or analyzing spreadsheets of historic data, when looking back we need to be very aware of where we are looking back from.
Yes, a higher return on plan assets reduces the funding requirements for the pension plan and the expense that the sponsor must report. But the plan’s true economic cost is independent of the investment performance of the plan assets.
The sustainability of traditional public sector defined benefit (DB) plans has become front-page news and the subject of acrimonious debates usually framed in stark terms of DB versus DC (defined contribution). This either/or framing is unhelpful: It simply perpetuates the strongly held views of the defenders and critics of these two opposing pension models.
Retirement security is a key area of focus for the Future of Finance initiative at CFA institute, and we hosted an online forum featuring a panel of experts with varied backgrounds and perspectives to examine the size and scope of the public pension funding gap, debate its causes, and to consider potential solutions.
Over the past decade, the funding gap for US public pension plans has widened considerably, and many state and local plans today find themselves in desperate straits, facing an aggregate shortfall in excess of $4 trillion.
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