Long-Short Pension Plan Solution

It’s time for pensions to allocate a portion of their equity exposure to carefully chosen long-short equity funds.


Bundles of US one hundred dollar bills in bird’s nest, elevated view

Don Farrall/Getty Images

The U.S. pension system is in crisis. According to a recent study by consulting group Mercer, the 1,500 largest companies in the U.S. have an aggregate pension deficit of $380 billion. Corporations are feeling the heat from the Pension Protection Act of 2006, which stipulates that all corporate defined benefit pension plans be fully funded by 2011.

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