Thread: The Great Pension Deficit

Usually, the managers of a pension fund are not participants in the fund, because they would have undue influence and interst in maximizing their own holdings and not specifically other participants'. Personally, I think if the fund managers invested in real estate tranches or something similar they all should be fired. Unfortunatly that's probably the worst you can do to them because those investments were supposed to be AAA+.

Oh and as for the "elected officials" - no rainy day fund, no pension.

I don't want to bet against human ingenuity, but I don't see any way possible we can get out of this mess without taking on more debt.

The great myth of Wall Street is that stock buyers can buy stocks for the long run and count on the 10% gains that have ensued 'historically'. What a scam. How many pension funds planned on 11 or 12% returns when the going was good, ie: 1990-2000, 2003-2006, only to get wiped out and then some twice in the same decade?

Bullitt,

From what I have heard most pension funds planned on about 7% annual gains. They bumped it up in the go-go years (because of political pressure) to about 8%. Most are probably about even now - but even is not good enough when one is demanding a consistent 8% growth. They will overcome their losses soon enough.

The real problem are bubbas retiring in their 50s, 'buying' years of service, and getting good medical benefits for an extended retirement. Another huge problem in these state and city pensions is that neither the employee nor the employer invests the proper amount. The unions reduce the employee responsability, the government entities delay investment when 'right now' problems are occuring.

This game is over.

There will be pension cuts.

Originally Posted by Boghie

The real problem are bubbas retiring in their 50s, 'buying' years of service, and getting good medical benefits for an extended retirement.

Guilty.

Originally Posted by Boghie

The real problem are bubbas retiring in their 50s, 'buying' years of service, and getting good medical benefits for an extended retirement.

Originally Posted by clester

Guilty.

Yeah, me too! I was going to work until I was 85... then I heard the world was gonna end in 2012 and figured WTF... might as well go when I'm 50! So starting this June... I will be a burden on society.

Clester, GMace,

I have a feeling Clester has significant assets in his Al Gore 'Lockbox' (that is, TSP). No politician can jigger formulas and change your distribution or asset levels.

However, politicians CAN jigger your pensions.

And, they will do so.

Easy target.

Ahem.

I made it a year ago. Best thang ever.

To all those folks who thought our pensions were sacrosanct:

The message is clear. In any collision between the laws of government and the laws of arithmetic, arithmetic wins.

There ain't any money.
Especially in Liberal Strongholds.
California, Illinois, Wisconsin, New Jersey.

Rahm Emmanuel in the other Blue stronghold of Chicago was saying things that could have come directly from California’s Little Hoover report. Emmanuel was said to favor cutting benefits not just for new hires, but for existing employees.

I don't relish this reality, but it is reality.

I'm wondering how the Federal Gubmint 'invests' our FERS pension? Is it with something like an L fund? Or, is it with something like direct payouts from the Treasury - i.e. the assets are not invested but instead paid out as a budget line item?

The only good thing is that the anti-worker warmonger Ronald Reagan forced us into an 401(k) style retirement system for the majority of our retirement assets. He, obviously, was a moron not to trust politicians.

Its not smart to trust current politicians with the promises of former politicians

Originally Posted by Boghie

I'm wondering how the Federal Gubmint 'invests' our FERS pension? ... Its not smart to trust current politicians with the promises of former politicians

i think they just give it to congress so they can spend it to stimulate growth, and for safekeeping in the long term too.

Got my answer, Burrocrat, got my answer - I think...

I think it is just a Social Security enhancement...

Counting on Pelosi and Ryan for payout...

Never a good thing, never...

Uuuuggggghhhhhhh...