By Michael Katz
Source: Chief Investment Officer
NCPERS research found that increasing income inequality ‘degrades national economic growth.’
Research done by the National Conference on Public Employee Retirement Systems found that public policies aimed at cutting public costs by reducing pension benefits or switching to defined contribution plans may actually increase the need for public spending due to “the dynamic interrelationship between pension reforms, income inequality, the economy, and market return.”
The continuing decline of the number of defined benefit pension participants in the U.S. is widening America’s income equality gap, which in turn is stunting economic growth, according to the recent study from NCPERS.