Financial Economics Paper Out

After originally suppressing the release of ‘Financial Economics Principles Applied to Public Pension Plans’ and disbanding the task force that developed it, the actuarial establishment has relented, but with a consumer warning:


Now that you have been cautioned, the paper is here. More on Monday.

17 responses to this post.

  1. Posted by skip3house on September 9, 2016 at 2:01 pm

    Why can’t Actuaries agree on what 2 + 3 adds up to?


  2. Posted by George on September 10, 2016 at 9:25 am

    Search on ‘Financial Economics Principles Applied to Public Pension Plans’, not too many google hits, in fact maybe no google hits under news.

    In other non news:

    The Chilcott inquiry has finally been published, Tony Blair is not awaiting execution in the Tower of London. There is a movie out the Killing$ of Tony Blair, but that’s it.

    A respected scientific journal claims that the airplane strikes cannot explain the collapse of any of the Word Trade Center buildings.

    Click to access epn2016474p21.pdf

    Europhysics News appears not to be a bunch of kooks:

    So don’t get your hopes up to high about your SOA report.


  3. […] « Financial Economics Paper Out […]


  4. what will all the actuaries do for those rich salaries, if defined benefit plans go the way of the dinosaur????


  5. More and more people are beginning to realize that Defined Benefit plans like public pensions are not sustainable, including the private sector which has more or less done away with them. Here is my solution to this looming crisis that is only going to get worse without any correction of course:

    Please help spread the word…


    • Posted by Anonymous on September 14, 2016 at 6:44 pm

      The genius knows how to cut and paste, spread the word.


      • Posted by Anonymous on September 14, 2016 at 7:00 pm

        Why disparage, do you have any suggestions on how to stabilize public pensions so that those people who are counting on them (maybe you are one) will not be devastated when the funds go bankrupt? Are you familiar with the Teamsters Central States Pension collapse in the private sector that is happening NOW? Unless something is done, this will start occurring in the public pension world as well – it’s a math problem!

        BTW – I’m the author.


        • Posted by Anonymous on September 14, 2016 at 7:04 pm

          Appreciate you shallow disconcerning commentary, BTW never heard of you or your works but keep it up whatever it is.


        • Posted by S Moderation Douglas on September 15, 2016 at 12:57 am

          The author should recheck his facts. Government workers are at least fifteen percent of the workforce, and that doesn’t include contract workers. No way federal workers make 78% more than private workers. If a pension continues to a surviving spouse it is because the base pension was actuarially reduced to compensate. The “overly generous pensions” are a tradeoff for verifiable lower average salaries. To a large extent, “Intergenerational theft” is simply because governments didn’t pay the bills.

          Mary Pat Campbell:

          24 February 2016, 22:00
          I’ll give it away at the beginning: they’re in trouble because they’re not making the “required” contributions to the pensions.

          Yes, there are all sorts of other reasons as well, such as spiking, early retirements, sluggish payroll growth, optimistic valuation assumptions, etc.

          But ultimately the reason the pensions are so little funded is because the state didn’t put in enough funds.

          And they knew it.

          They knew it for years.

          It’s not because of investment fees, though those should be more transparent. It’s not because of part-time board directors who get a lifetime pension for very little work, though that doesn’t help. (I’ll address why these aren’t significant problems in a later post.)



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