Emel'yanov S.V.Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation es73@mail.ru
Petrovskaya N.E.Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation vitern@mail.ru
Importance The article examines the specifics of socio-economic policies for retirement benefits at the level of states and local authorities, specifics of managing public defined retirement plans of the regional level in the USA, which are funded through contributions of states’ governments, local authorities, employees, as well as return on investment of amounts earmarked for retirement benefits in shares, bonds and other instruments. Objectives The research comprehensively reviews the role of regional pension funds, specifics of investment of amounts designated for retirement benefits and inherent risks, significance of return on investment out of total revenue from short-term and long-term perspectives. Methods Using a systems approach, economic, statistical and logic methods, comparative analysis and original sources, we studied the U.S. practices of developing regional retirement systems. Results Having analyzed the development of regional retirement systems comprehensively, we identified key principles of their operation, development trends, specifics of retirement assets management, mix of investment portfolios, current and non-current risks. Conclusions and Relevance Having analyzed trends in revenue and payments under retirement plans of the states and local governments, role of investment income against total revenue, the retirement systems were found to have high financial and economic capabilities, but had to face certain challenges arising from recession in particular. Trends in the asset-to-liability ratio shows a growing issue of unfunded retirement plans, which require governments of states and local authorities to increase contribution rates and subsequently improve those plans.
Keywords: regional retirement plan, USA, investment, pension fund, retirement benefit
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