Pension Woes Mounting?
My "pension doom ahead" folder is bursting with clips lately. E.J. McMahon, writing in today's WSJ (paid subsc), argues that public pension ...
My "pension doom ahead" folder is bursting with clips lately.
E.J. McMahon, writing in today's WSJ (paid subsc), argues that public pension funds around the country are hiding as much as $1 trillion in future liabilities by using optimistic actuarial assumptions. McMahon believes that the 8 percent rate of return many public funds assume they'll make is too rosy. "If private-sector accounting standards were applied to these systems," he writes, "they would all look much worse."
Meanwhile, yesterday's NY Times noted that NYC's reportedly sound pension fund suddenly goes $49 billion in the hole if you tweak a few actuarial assumptions. (A previous story foretold pension problems around the U.S.).
The undercurrent in all these stories is that there are more cases of San Diego-itis out there. Are they right?
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
Obama Takes On Zoning Laws to Address Housing Shortage14 hours ago
To Keep Drug Prices Down, States May Pay Based on Effectiveness14 hours ago
The Never-Ending Debate About Fluoride in Tap Water14 hours ago
Flint Water Investigator Resigns After Drunken Driving Arrest14 hours ago
New Rules Issued for Municipal Courts in Missouri14 hours ago
Portland Converts 600 Bathrooms to Gender-Neutral14 hours ago