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Rating the State Government Public Pension Plans in the US

Author

Listed:
  • Jiapeng Liu
  • Rui Lu
  • Zhengyang Zhang

Abstract

The government-sponsored pension plans in the US, mostly defined benefit (DB) pension plans, are severely underfunded. In this study we examine the current state of the public pension plans, and rate them based on their actuarial funding ratio, risky asset allocation, and other multiple variables using both a simple ranking and a principal component analysis method. We aim to help public employees/retirees understand the financial health of their pension plans, and to raise the public awareness of the pension Tsunami.

Suggested Citation

  • Jiapeng Liu & Rui Lu & Zhengyang Zhang, 2015. "Rating the State Government Public Pension Plans in the US," Accounting and Finance Research, Sciedu Press, vol. 4(4), pages 1-39, November.
    • Handle: RePEc:jfr:afr111:v:4:y:2015:i:4:p:39
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    References listed on IDEAS

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    3. Mohan, Nancy & Zhang, Ting, 2014. "An analysis of risk-taking behavior for public defined benefit pension plans," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 403-419.
    4. Wang, Junbo & Wu, Chunchi & Zhang, Frank X., 2008. "Liquidity, default, taxes, and yields on municipal bonds," Journal of Banking & Finance, Elsevier, vol. 32(6), pages 1133-1149, June.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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