Debate Heats Up over Public Pension Fund Discount Rates

BodieZviInstitutional Investor
Zvi Bodie, School of Management

Last summer the Indiana Public Retirement System (INPRS) created a stir in the U.S. public defined benefit pension world by dropping its long-term investment return assumption to 6.75 percent a year, the lowest of all its peers…

Expert quote:

“What is unethical, unprofessional and unscientific is to make your employees believe they have something that is risk-free and make taxpayers believe it has no cost.”

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