Pensions in the Public Sector

Some 13 million public-sector workers in the United States—including teachers, police and firefighters, state and municipal employees, judges, and legislators—and another six million federal and military employees participate in government pension plans. These pension systems are extraordinarily diverse in design, investment policy, and governance, and they face substantial challenges as the government-sector workforce ages and governments are asked to take on new and different tasks.

Public employee pensions are in deep trouble in many countries, undermining economic policy and threatening retiree well being. What can be done to help these programs perform more efficiently and enhance old-age security? From the Pension Research Council of the Wharton School, this volume takes stock of public pension developments in the US and Canada, highlighting challenges these financial institutions face in coming decades. The first Pension Research Council study of public pensions in a quarter of a century tackles these topics with an impressive team of international actuarial, legal, and economic experts.

From the Pension Research Council of the Wharton School, this book explores the diversity of governmental pension plans and investigates how these financial institutions must change in years to come.

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Seventeen contributions from pension directors and academics discuss the diversity of government pension plans in North America and investigate the challenges these financial institutions will face in the future. Several case studies illustrate how decisions are made at the individual pension board level. A sampling of topics includes federal, state, and local pension plans; regulation and taxation; governance and investments; social security reform; and asset/liability management. Among the challenges discussed are the transition from defined benefit to defined contribution plans, and details of plans and reform in Florida, Pennsylvania, New Jersey, and Washington, D.C. Mitchell is affiliated with the U. of Pennsylvania; Hustead with the Hay Group, Washington D.C. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Olivia S. Mitchell is Executive Director of the Pension Research Council and International Foundation of Employee Benefit Plans Professor of Insurance and Risk Management at The Wharton School of the University of Pennsylvania. Edwin C. Hustead is Senior Vice President at The Hay Group, Washington, D.C.