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Even if the money was there, all the projections when they created the pension benefits assumed unrealistic rates of return.
by schnable 9y ago
Even if the money was there, all the projections when they created the pension benefits assumed unrealistic rates of return.
- jasode 9y ago>, all the projections when they created the pension benefits assumed unrealistic rates of return. It would be interesting if ComputerGuru's post was "politicians promised mathematically impossible pensions" instead of "undeserved pensions". Maybe the replies would have focused on that aspect. The issue is that the unrealistic pensions were promised by politicians instead of competent actuaries. With promises like automatic 3% annual pension increases, they've created an exploding liability that even Norway and Sweden couldn't fulfill. Illinois created promises that exceeded the productive capacity of its citizens' tax base.
- electricEmu 9y agoWould that be the difference between "something possibly reasonable" and "what we have now" coming from the pension fund?