Thursday, August 11, 2016

An Unsolvable Math Problem: 
Public Pensions Are Underfunded 
By As Much As $8 Trillion
Article with references to Bill Gross* observations on the unsustainable ponzi-scheme called defined pension plans .. Gross: "Fund managers that have been counting on returns of 7% to 8% may need to adjust that to around 4% .. but public pensions, including the California Public Employees’ Retirement System, the largest in the U.S., are reporting gains of less than 1% for the fiscal year ended June 30 - far away from even 4% ..  Article: "True public pension underfunding could be closer to $5.5 trillion, or over 2.5x more than current estimates. Others have suggested that returns should be closer to risk-free rates which would imply an even more draconian $8.4 trillion underfunding."
LINK HERE to the article

1 comment:

Anonymous said...

Yse and I bet many of those pensions are to be received by the very same civil servants that got the U.S. in this mess in the first instance. Poetic justice.