The problems that persist with pension fund allocations, particularly those funded for public state employees, is that they are predicated on assumptions that securities will continue to earn about 8% a year.
These funds averaged as much in the more distant past, but they are now earning much less in recent years. Unfortunately, pension funds will be lucky to get 3% net or so in the future.
This under-funding for public state employees is running in the trillions and is bankrupting many state budgets.
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