The board of Illinois' largest public-pension fund took action that would increase the state's annual contribution by hundreds of millions of dollars amid a budget crisis.What better proof than this that public pensions are viable ? It's time the dangerous Ponzi scheme be eliminated.
Teachers Retirement System trustees voted today to lower the assumed rate of return on the fund's investments from 7.5 percent to 7 percent. That's another $420 million Illinois will have to contribute to the underfunded pension account in the next fiscal year.
The move comes as pension systems across the United States are seeing lackluster returns and analysts are warning they should adjust expectations.
Lowering the return rate will increase the amount the state has to contribute to the hugely underfunded account.
Friday, August 26, 2016
Crain's Chicago Business reports:
Posted by Steve Bartin at 7:06 PM