The risks of public pension systems reaching for higher investment returns

Evgenia Sidorova  |  September 10, 2019

By Evgenia Sidorova, includes “In a recent research paper, researchers from the Federal Reserve Board examined the motivation and consequences of risk-taking behavior among public pension funds. … Overall, they see a pattern of riskier behavior among plans that have a relatively low asset to liabilities ratio, as well as those that have weaker public finances. … State and municipal retirement systems, as well as an employer offering a defined benefit plan, need to consider the long-term consequences of exposing their pension funds, and taxpayers, to greater risk.” 

Read the full article on: Reason Foundation

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