The S&P 500 Index stocks are currently returning about 2.2% but pensions assume earnings of around 8%. This is true of public pensions as well.
Bond returns are higher but the better-rated issues don’t offer much more returns than stock. And they may make up about half the pension investment portfolios. There are thus obvious, enormous shortfalls in pension obligations.
Corporations face deficits; many anticipate bankruptcy as a solution. (See the Earl J Weinreb NewsHole® comments.)
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