Meijdam, Lex; Ponds, E.H.M. - Tilburg University, Center for Economic Research - 2013
Abstract: This paper explores the optimal degree of funding of public sector pension plans. It is assumed that a … benevolent social planner decides on the contribution of current taxpayers to the funding of public sector pensions next period …, weighing the interests of current and future tax payers. Two elements play a role in the optimal funding decision: the optimal …