The Case Against Stock in Public Pension Funds
- Topics:
- Accounting software,
- Financial Regulations
- Tags:
- Accounting,
- Stock,
- Pension Fund,
- Payroll Solutions,
- Operational Accounting,
- Investment,
- Human Resources,
- Financial Services,
- Finance,
- Benefits,
- ...
- Source:
- University of Pennsylvania
FREE Registration is required
Overview: Invoking a transparent accounting framework based on economics rather than actuarial and accounting traditions, Bader (2003) concludes that shifting the corporate plan investments from equities to bonds adds value for shareholders (a tax arbitrage gain) and for participants benefit security gain). Nonetheless, the paper shows that parallel reasoning leads to parallel conclusions: in a transparent financial environment, shifting governmental pension fund investments from equities to bonds adds value for local taxpayers (a Federal tax arbitrage gain). The paper observes that the practical obstacles to an all-bond strategy in public pension plans are greater than those that apply in a corporate setting.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 56KB | Date: Nov 2004 | Pages: 24
