A Way Forward on Pension Reform?

The use of a lower rate of return (substantially so) and the sharing of investment risk are two features of an improved pension system.  An ERISA for the public sector would lower the assumed rate of return even more.  The sharing of investment risk mimics what would happen in an optimally designed 401(k) style scenario, where workers would own a portion of a large pension fund, but not be promised a defined benefit.

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