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One of the reasons public pension plans continue to be so poorly funded are Unrealistic Assumptions.\u00a0 There are numerous assumptions made by the investment and actuarial industries that serve public pension systems.\u00a0 Underlying these assumptions is pressure to use overly optimistic assumptions which translates to lower budget demands upon plan sponsors (i.e. states, counties, cities, school districts, etc.)<\/p>\n
The Wall Street Journal has an article which highlights just one example of these overly optimistic or unrealistic assumptions.\u00a0 The median assumed investment return on pension assets is 7.25%.\u00a0 Over the past 10 years the actual median return was 6.79% and over the past 20 years the actual median return was 6.49%.<\/p>\n
The Wall Street Journal article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" One of the reasons public pension plans continue to be so poorly funded are Unrealistic Assumptions.\u00a0 There are numerous assumptions made by the investment and actuarial industries that serve public pension systems.\u00a0 Underlying these assumptions is pressure to use … Continue reading