Pennacchi, George G; Lewis, Christopher M - In: Journal of Money, Credit and Banking 26 (1994) 3, pp. 735-53
This paper considers the cost of Pension Benefit Guaranty Corporation (PBGC) insurance for single-employer defined benefit pension plans. It derives a formula for the PBGC's liability that explicitly recognizes the two necessary conditions that must arise for the PBGC to sustain a loss. First,...