Saturday, May 5, 2012

Public Pension Earnings

The public pension deficit gaps are worse than what the mainstream media mention.

That’s because the projected income used for investments in them is still too high at 7% and 8% when actual earnings are more like 6% and less.

In reality, the estimated earnings on investments to pay future public employee pension payments ought to be equivalent to what the state. city or other local entity has to pay when it borrows to finance the pension money.

Therefore, the problem we see today has, unfortunately, been hidden by politicians kicking the proverbial can down the road.(See the Earl J. Weinreb NewsHole® comments.)

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