All these pensions are going to be wiped out soon in the coming run. Most funds currently assume 7% to 8% future rates of return but the ability to generate ret

All these pensions are going to be wiped out soon in the coming run. Most funds currently assume 7% to 8% future rates of return but the ability to generate returns like that have been impossible for a long, long time now. To compensate for low returns, pension funds have dumped money into stocks, private equity funds and illiquid and very risky investments, like subprime auto loan securities and commercial real estate. Some pension funds have as much as 20% of their assets in private equity. When the stock market inevitably crashes a little, it will wipe pensions out. Then politicians will be forced to admit there's a problem, and everybody is going to immediately do a run on their pensions to try and cash them out. For anybody who doesn't know if your job offers a pension scheme and you quit before retirement, you are paid out a lump (taxable) sum. There's no way these states like CT or NY with massive unfunded liabilities can afford 20%+ of their employees trying to cash the pensions. The International Forum of the America's holds an annual pension conference where the data on the coming run on public sector pensions can be found, such as all the risky investments to make up for poor returns. Interestingly, private sector pension schemes are fine.