Public Pension Plan Fantasies

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 their fund managers undertake fiduciary responsibility in the face of budget deficits. Moreover, future economic growth is unlikely, so the assumed return figure is even more unattainable.

Yet, the fantasy continues; the public employee budget fiasco goes on. In fact, almost 20% of such public pensions blindly plan on average annual earnings well over 8% per year.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)