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I don't understand...how can there be a shortfall when annualized returns exceed the promised 7.x%? Take Ohio for example (https://www.strsoh.org/_pdfs/investme
by hchenji 11y ago
I don't understand...how can there be a shortfall when annualized returns exceed the promised 7.x%? Take Ohio for example (https://www.strsoh.org/_pdfs/investments/investments.pdf https://www.strsoh.org/_pdfs/investments/investments.pdf). They seem to return an annualized 8% over the last 10 fiscal years (june-june). Why can't other state pension funds just ape this asset allocation?
- lotsofpulp 11y agoThe mortality rates used could have been wrong, and people living longer than expected means more money having to be paid out than expected. I'd also take pension fund return #s with a grain of salt, as there are lots of ways to massage taxpayer funded pension numbers. And all pension funds can't just copy each other, otherwise a bubble happens and in the end everyone ends up with less. The only way out for all pension funds to win is to inflate the dollar, i.e. making the people receiving the pension lose. Or to increase taxes, making taxpayers lose. Actually, taxpayers lose in both cases.