The illusion continues: Problems persist with pension fund allocations, particularly those funded for public state employees.
They’re still being based on assumptions that securities will continue to earn about 8% a year. So less funds go into the kitty than is needed.
These funds averaged that much in the distant past, but they have been 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. But the illusion persists. ( See the Earl J Weinreb NewsHole® comments.)
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