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Should the PBGC Have Control Over Distressed Pensions' Investing?
Chief Investment Officer [CIO] 
Oct. 18, 2012
"[A] financial economist ...[argues] that defined benefit plan sponsors become overly aggressive with pension portfolios when those funds enter distressed territory, because the PBGC's backing creates a moral hazard. In normal, non-distressed times ... the same corporate pension portfolio fulfills both stockholders' and members' best interests. When things get rocky, however, taking on more risk is optimal for shareholders, because even if the gamble fails, the plan is backstopped by the PBGC. Thus, moral hazard."
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