Funding Levels and Gender in Public Pension Plans

21 Pages Posted: 11 Aug 2008

See all articles by Timothy Eaton

Timothy Eaton

Miami University of Ohio - Department of Accountancy

John R. Nofsinger

University of Alaska Anchorage

Abstract

Using a comprehensive sample of 2002 and 2005 U.S. public retirement systems, we found that public pension plan underfunding grew dramatically in these years despite a good economy, increasing state tax revenues, and strong stock market returns on average, plans were only 83% funded. Teacher plans and plans with the most retirees were more underfunded. We found no significant differences related to asset allocations or actuarial assumptions about inflation and rate of return. A primary factor associated with significantly lower underfunding was more female active participants in the plan, suggesting another risk to women's retirement income.

Suggested Citation

Eaton, Timothy and Nofsinger, John R., Funding Levels and Gender in Public Pension Plans. Public Budgeting & Finance, Vol. 28, No. 3, pp. 108-128, Fall 2008, Available at SSRN: https://ssrn.com/abstract=1213300 or http://dx.doi.org/10.1111/j.1540-5850.2008.00913.x

Timothy Eaton

Miami University of Ohio - Department of Accountancy ( email )

310 Laws Hall
Oxford, OH 45056-1675
United States

John R. Nofsinger (Contact Author)

University of Alaska Anchorage ( email )

3211 Providence Drive
Anchorage, AK 99508
United States

HOME PAGE: http://faculty.cbpp.uaa.alaska.edu/jnofsinger/

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