Design considerations for large public sector defined contribution plans

Authors

  • Kevin W. SigRist Florida State Board Of Administration
  • Stewart L. Brown Florida State University, Tallahassee, FL 32306, USA

DOI:

https://doi.org/10.1016/S1057-0810(01)00066-X

Abstract

The paper identifies differences between private (401 (k)) plans, which have evolved under ERISA and existing public plans, which have not. Examination of model legislation reveals that public plans should largely conform to ERISA going forward and reflect best practices in the private sector. Empirical analysis of equity mutual funds with $1.8 trillion in assets and institutional equity accounts with $98 billion in assets demonstrates efficiencies in separately procured institutional investment, administrative and educational services relative to retail investment products. The analysis points to tension between the duties of trustees and the demands of participants requesting large numbers of retail investment options. © 2001 Elsevier Science Inc. All rights reserved.

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Published

2000-09-30

How to Cite

SigRist, K. W., & Brown, S. L. (2000). Design considerations for large public sector defined contribution plans. Financial Services Review, 9(3), 197–218. https://doi.org/10.1016/S1057-0810(01)00066-X

Issue

Vol. 9 No. 3 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 Elsevier Science Inc.

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