Government employee pension funds are usually guaranteed by localities and each state involved, They invest in securities and consequently are affected by the ups and downs of the marketplace. The past financial meltdown has hurt them as it has other institutions and individual investors.
Pension funds also are hurt when the governmental overseers do not add sufficient funds to meet obligations and promises they have made to their employees. And this has been the rule rather than the exception in too many instances for years.
How have many of these government entity administrators coped with the problem in recent years? By cooking the books. By estimating higher returns on their portfolios than they will be able to possibly earn in the future.
The amounts of the shortfall? Billions of dollars per each state in America.
No comments:
Post a Comment