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To: Olog-hai

How is the pension fund underfunded? This isn’t a government funded public employee retirement plan where the government spends ghe money instead of funding the plan. Granted they represent some government workers but I know in my area they perform audits on those agencies to make sure its be deposited appropriately.


5 posted on 05/06/2016 8:09:40 PM PDT by shotgun
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To: shotgun
How is the pension fund underfunded?

If it is done the way government pension funds are funded, it works like this. You give extravagant promises in doling out pension perks based on extremely optimistic rates of returns on investing the pension funds, say a 15 to 20 percent return per year. Even though market realities return more like 1 to 5 percent return per year. And you continue telling everyone the low returns are an anomaly... year after year while promising lots of pension benefits. And that is how it becomes underfunded.

7 posted on 05/06/2016 8:16:19 PM PDT by roadcat
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To: shotgun

look up Ron Carey. They spent the funds on campaign donations to democrats instead of investing in business.


17 posted on 07/05/2016 6:40:10 PM PDT by piasa
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