Public Pension Problems

            

The assumed rate of return on pension funds of almost 60% of unionized American public workers is at 8.0%. This is currently almost impossible to get within any investment portfolio. Still the fund managers undertake such fiduciary responsibility, especially in the face of budget deficits. Moreover, future economic growth is questionable, so the assumed return figure is even more unattainable.

                     

Yet, the fantasy and façade continue; the public employee pension planning fiasco goes on. In fact, almost 20% of such public pensions blindly plan on average annual earnings well over what’s attainable.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)