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Really good comment and fair point But mortality credits (pooling) don't solve the math of the discount rate - they add 100 - 150 basis points of reduction so
by aresant 8mo ago
Really good comment and fair point
But mortality credits (pooling) don't solve the math of the discount rate - they add 100 - 150 basis points of reduction so retarget to 5.5% vs 4% if generous
So they are still structurally designed where they HAVE to allocate towards risk to meet their targets which is at core of issue
- ineptech 8mo agoIt feels like you're missing the whole point of the whole article, which is that treating public pensions like a bunch of 401ks misses the opportunity to invest all that money in something that benefits the retirees collectively. I'd rather retire on 4% from a bond to improve the school my grandkids go to than 5.5% from a PE firm that intends to "more efficiently manage" the retirement home I live in.