Developing a Pension Funding Policy for State and Local Governments (PDF)

Developing a Pension Funding Policy for State and Local Governments (PDF)
"These funding principles can be thought of in a risk-management framework. In an effort to keep the employer's pension contribution relatively stable from year to year, a funding policy should: (1) identify key risk areas that add to contribution volatility and (2) identify ways to manage each of those risks. The primary risk areas in funding retirement systems are investment risks, demographic risks within the covered population, benefit or plan design risks, and governance risks." (Gabriel Roeder Smith & Company)