NEW YORK--(BUSINESS WIRE)--A new book by NYU Stern Professor Ingo Walter and co-author Clive Lipshitz illustrates the challenges facing America’s public pension system and its public infrastructure and suggests solutions to both, particularly by connecting the two. The book will be of interest to anyone with a stake in public pensions and in the state of our infrastructure – pension beneficiaries, taxpayers, policymakers, fund managers, trustees, investors, and advisors. The research is a product of NYU Stern’s Infrastructure Finance Initiative, sponsored by the Global Institute for Advanced Study.
In “Bridging the Gaps,” Lipshitz and Walter provide a detailed profile of the U.S. public pension system, which they examine using a primary dataset comprising thousands of observations contained in a decade of annual reports of the 25 largest public pension systems (55% of all U.S. public pension assets). They explore why and how pension plans invest in infrastructure, and how the asset class has performed in relation to other investment choices.
The authors provide a series of actionable recommendations to enhance public pension governance and funding. They investigate more effective ways of matching pension capital to infrastructure investment needs in a way that benefits all stakeholders, including approaches that have been successfully deployed in other countries. Their policy suggestions include innovative financing techniques that can provide more private capital to essential public facilities while allowing pension plans to obtain more exposure to the kinds of long-duration, stable cash flows they need.
“We hope that this study provides greater transparency to complex public finance challenges. It lays out a range of ideas that can be explored by responsible officials and policymakers,” the authors note. “Ultimately, we hope to make a positive contribution to the search for solutions to public pension sustainability as well as unlocking capital to remedy America’s persistent infrastructure gap. This will produce winners on both ends of the financial chain.”