We propose an economic reformulation of contribution policy integrating: (1) formalization of sustainability as the steady-state contribution rate, incorporating both the expected return on risky assets and a low-risk discount rate for liabilities; (2) derivation of contribution adjustment policies required for convergence toward the target funded ratio and contribution rate; and (3) a stylized optimization framework for simultaneous determination of the target portfolio return and funded ratio. This analysis provides new theoretical insights into the basis for pre-funding vs. pay-as-you-go, resting on the convexity of the long-run risk-return relationship, and also potentially practical guidelines for contribution policy.
Costrell, Robert M., and Josh B. McGee. (). Toward An Economic Reformulation of Public Pension Funding Policy. (EdWorkingPaper: -674). Retrieved from
Annenberg Institute at Brown University: https://doi.org/10.26300/wrsb-as16
Twenty states now require prospective teachers to pass a standalone Science of Reading (SOR) exam. These exams restrict teacher supply as a barrier, and whether they are worth that cost depends on whether they also screen on teaching quality.
College presidents are among the highest-paid individuals in higher education, and in 2017 the Tax Cuts and Jobs Act increased their cost to their institutions via a 21% excise tax on nonprofit executive compensation above $1 million.