Funding Levels and Gender in Public Pension Plans |
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Authors: | TIM V. EATON JOHN R. NOFSINGER |
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Affiliation: | 1. Department of Accountancy, Richard T. Farmer School of Business, Miami University, Oxford, OH 45056, and;2. Department of Finance, College of Business, Washington State University, Pullman, WA 99164 |
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Abstract: | Using a comprehensive sample of 2002 and 2005 U.S. public retirement systems, we found that public pension plan underfunding grew dramatically in these years despite a good economy, increasing state tax revenues, and strong stock market returns on average, plans were only 83% funded. Teacher plans and plans with the most retirees were more underfunded. We found no significant differences related to asset allocations or actuarial assumptions about inflation and rate of return. A primary factor associated with significantly lower underfunding was more female active participants in the plan, suggesting another risk to women's retirement income. |
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