Private Pension Plans:

Efforts to Encourage Infrastructure Investment

HEHS-95-173: Published: Sep 8, 1995. Publicly Released: Sep 26, 1995.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information on the role that pension plans play in expanding public investment in infrastructure projects.

GAO found that: (1) pension plans have not been investing in domestic public infrastructure because of the combined effects of federal law, which requires plans to seek the highest rate of return on investments and encourages growth by exempting earnings from taxation; (2) to encourage public investment in infrastructure, federal law provides a tax exemption on interest income to those who invest in municipal bonds; (3) pension plans have no incentive to invest in lower-interest municipal bonds, since plan earnings are already tax exempt; (4) although the Infrastructure Commission recommended creating two federal financing entities to attract pension plans to invest, the share of plan assets that might go to infrastructure would likely be small; and (5) the federal capitalization of state revolving funds may be an option to expand infrastructure investment without relying on pension plans.

Oct 22, 2014

Jul 29, 2014

Jul 28, 2014

Jul 7, 2014

Jun 16, 2014

May 27, 2014

Apr 21, 2014

Mar 5, 2014

Feb 26, 2014

Looking for more? Browse all our products here