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Pension Meltdown
Passing the Disappearing Buck
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  • Andrew Allison

    Seems like a cogent argument for regulating public pension plans in the same way that private plans are.

    • Boritz

      Interesting notion. Overpromised pensions have long been a ‘safety valve’ used to mollify public employee demands. It would be interesting to see how those demands could be managed if this ruse were not available to the managers. “You simply can’t have everything you believe you have coming to you.” won’t go over very well but would force management of the problem in real time instead of decades later.

      • lhfry

        Private pension plans are regulated by the Employee Retirement Income Security Act (ERISA). It has not prevented the same type of mismanagement as the recipients of lower payments issued by the Pension Benefit Guaranty Corporation can tell you after their plans had to be assumed by the agency. The Teamsters, Pan Am, TWA, steel companies.

  • Anthony

    An old Irish friend once told me “I made a $100,000 and spent a $1,000,000 but the reckoning cannot be postponed.” There is similarity.

  • fastrackn1

    Hopefully someday, pensions will only be spoken of in historical context….

  • Winston Smith

    They should check out the returns from an S&P 500 index fund. Since 1926 the annual historical returns on either an arithmetic or geometric basis for the S&P 500 have been larger than the quoted 2.6%.

    I am not a broker nor do I represent any financial institution nor do I provide financial or investment advice to or for anyone.
    I just like numbers :-}

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