4 ms·
What should scare people the most is the Illinois pension funds' assumption of ~ 7% real returns going forward. If the market stays flat in real terms for the
by nugget 9y ago
What should scare people the most is the Illinois pension funds' assumption of ~ 7% real returns going forward. If the market stays flat in real terms for the next decade, which seems at least possible (if not plausible), it's significantly worse than their worst-case scenario, which is already probably unsolvable without some form of default.
- lr4444lr 9y agoI trust saner heads will eventually prevail. New York Teacher Retirement System had a similar expected return (even a big higher) under which they offered an investment option of 7% return under any market - no more, no less. That's an insane risk-free rate now, and the option no longer exists to new incoming members.