Tuesday, September 5, 2017

An Honest Pension Manager

Zero Hedge Fund has a nice story demonstrating the power of compounding. One way to make your pension look solvent is to assume exceptionally high expected rates of return. Minnesota made more realistic assumptions and found that their unfunded obligations ballooned from $16 billion to $50 billion. But Minnesota is only noteworthy because their revised assumptions are now more honest. Most other states are in pretty bad shape too.

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