9
Mar
The Next Trillion Dollar Hole That Washington Will Be Forced To Fill
Is it time to require the taxpayer to bailout city and state pension funds across the country?
Poor management, the stock market drop and worst of all built growth projections that were not only unrealistic but pure fantisty, should more than qualify these funds for prudent taxpayer money!
I understand that the City of San Diego will have to triple payments to it's pension system to stay on funding projections.
The largest public pension fund in the country, the California Public Employees Retirement System, has built in 7.75%-8% into its projections…and has not done better than 3.32% in recent memory. Except for 2008, when it lost 27%. Look at the Teacher Retirement System of Texas – the seventh largest pension fund in the country – expects to make 8% off its endowment. In reality, it has been making 2.6% for over a decade.
In Chicago, I am told, the local transit authority has a $1.5 billion shortfall with its pension fund as of 2007. After the stock market fall in 2008, this shortfall could easily now be approching $3 billion.
With the outstanding job being done with these government run pension funds, it would seem certain the government will do a simular laudable job managening a new universal health care plan.
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