ERIC Number: ED314965
Record Type: Non-Journal
Publication Date: 1989-May
Reference Count: N/A
Comparative Analysis of TIAA/CREF and North Dakota Public Employee Retirement System Pension Fund. North Dakota Economic Studies Number 55.
Lee, Jeong W.
Quantitative financial measures were applied to evaluate the performance of the North Dakota Public Employee Retirement System (NDPERS) pension fund portfolios and the Teachers Insurance and Annuity Association (TIAA)/College Retirement Equities Fund (CREF) portfolios, thus providing a relative performance assessment. Ten years of data were collected for each retirement system, and these data were broken down into fixed income and equity components so that similar categories of investments could be compared. Results revealed that the North Dakota pension fund was not achieving an adequate risk-adjusted rate of return, and it was concluded that the relatively small size and conservative nature of the North Dakota pension fund limited its investment opportunities. Specific recommendations for performance improvement include: NDPERS should consider a switch to a defined contribution system; the state should investigate the 401K tax-deferred savings plan authorized by the Internal Revenue Act of 1978; the state should consider using a computer modeling technique to adjust the equity-fixed income asset allocation; and fund managers should contact the state's Congressional delegation to express concern over the issue of taxation of pension funds. Contains 19 references. (Author/SM)
Descriptors: Compensation (Remuneration), Government Employees, Higher Education, Income, Investment, Personnel Policy, Retirement Benefits, State Government, Teacher Retirement
Bureau of Business and Economic Reseach, College of Business and Public Administration, University of North Dakota, P.O. Box 8255, Grand Forks, ND 58202 (free).
Publication Type: Numerical/Quantitative Data; Reports - Research
Education Level: N/A
Authoring Institution: North Dakota Univ., Grand Forks. Bureau of Business and Economic Research.
Identifiers - Location: North Dakota