From Candidate to Classroom: Research-Based Practices for Recruiting and Hiring Highly-Effective Teachers
Category: Staffing, Finance, and Operations
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.
Keywords
pension finance
Education level
Document Object Identifier (DOI)
10.26300/wrsb-as16
