Twenty-year annualized returns for public pensions in the U.S. are poised to decline to 7.47% once fiscal 2016 results are released in coming weeks, according to an estimate from Wilshire Trust Universe Comparison Service, which tracks pension investment returns, The Wall Street Journal reported.
The Journal reported that would be the lowest-ever annual mark recorded by Wilshire, which began tracking the statistic 16 years ago.
“Many states and local governments may be facing difficult choices if investment returns remain low,” Keith Brainard, research director at the National Association of State Retirement Administrators, told the Journal. “The money has to come from somewhere.”
The drop in 20-year annualized returns is significant because officials who oversee retirements for police officers, firefighters, teachers and government workers have long said one bad year or two isn’t as important as the long-term average, and they would earn enough money over decades to pay for retiree obligations, the Journal reported.
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5 comments:
If the Fed is going to continue to provide ZIRP for the illegal and unconstitutional government residing in Washington, then the pension and insurance industries will be wiped out.
They cannot survive in a zero (or near zero) interest rate environment.
Maryland lawmakers have been stealing the pension fund appropriations to use for other things for many years, so the pensions are way under-funded..
And now comes the storm.
Hogan needs to payback the money that was stolen from MD Retirement Fund. If he does not then he should cancel all Md Politian's retirement from the Governor down ASAP. They deserve a pension less than the hard working State employees they gave their life for the State. Yes there will be some comments from naysayers about the quality of work from State employees that consist of about 5% of the total State work force. Md had the most secure pension plan that was within the top 10 in the Country until Politians started to steal it.
That's what you get for trusting the government for your bread and butter. The trough has been robbed and all you government "workers" who were foolish enough to believe the promises have a rude awakening coming. I wish you luck, but most of you will not survive the collapse.
LOL!
You cheerleaders will not be any different from the rest of the serfs when they start telling citizens that they have spent (I call it "stolen) your pension and Social Security money and the well is dry.
Remember --- it WAS your money until, by law (and with a smile, too) they took it. If you didn't surrender that money to your "leaders", they would imprison you.
Perhaps, after you lose your home, or find out you can't afford the doctor anymore, you will stop that stupid cheering.
Would you clap right after a thug strong-arms you for your LIFE SAVINGS???
Starting to come around to the "hang each and every one of them and leave their bodies there for a week or so" yet?
You will.
Keep cheering!
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