The Pension Benefit Guaranty Corp. decided earlier this year to cut the percentage of assets invested in bonds to 45%, from 75%.
The PBGC, the entity that insures U.S. defined benefit pension plans, now plans to put 45% of its assets in stocks and 10% in alternative asset classes, according to Peter Orszag, director of the Congressional Budget Office.
Orszag discusses the shift in a letter sent to Rep. George Miller, chairman of the House Education and Labor Committee.