Robert M. Costrell
Toward An Economic Reformulation of Public Pension Funding Policy
Tags: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… more →
Reforming Teacher Pension Plans: The Case of Kansas, the 1st Teacher Cash Balance Plan
The ongoing crisis in teacher pension funding has led states to consider various reforms in plan design, to replace the traditional benefit formulas, based on years of service and final average salary (FAS). One such design is a cash balance (CB) plan, long deployed in the private sector,… more →
The Three R’s of Teacher Pension Funding: Redistribution, Return, and Risk
How are teacher pension benefits funded? Under traditional plans, the full cost of a career teacher’s benefits far exceeds the contributions designated for them. The gap between the two has three pieces, which may (with some license) be mnemonically tagged the three R’… more →
Sins of the Past, Present, and Future: Alternative Pension Funding Policies
Tags: Human capitalOur goal in this paper, presented at the 2020 Brookings Municipal Finance Conference, is to better understand teacher pension funding dynamics with a focus on sustainability and intergenerational… more →