Is this story familiar? Chicago sued by pensioners

[hewettbr]

So how is that theory of “funded as earned, and invested responsibly” actually working out in the REAL world?

In the State of California [[example I wrote about in post #7 above) only 22, that is 17%, of the 130 state pension funds are funded at the 80% or better level. And this is when they make the unreasonable investment assumption of 7.5%. If they used a more reasonable assumption the number of “healthy” funds would decline quickly. BTW, if you drop the investment rate to just 6.2% the amount of underfunding about doubles.

So, when the VAST minority of pension funds are “unhealthy” the real facts trumps theory.

The PBGC [[their own admission) will be broke in 10 years. Again, not so good in reality.

When the Federal unfunded pension liability is $127 Trillion, then you need to get real.

And don’t get me going about the “political” aspect. Wasn’t it a week ago that we found another three perps guilty of bribery and conspiracy in the two Detroit pension funds?

Frankly, between all the convictions and incarcerations of Monica, Beasley, Zajak, Mayfield, Anderson, Shumake I’ve actually lost count on the number of folks stealing from the pension funds. And you think Detroit is different than any other city?

So yeah, pensions MAY work out “in theory,” but in the REAL world not so much.

Exactly, plus assuming 7-8% is ludicrous. The concept is only a theory, 401k or other private plans are just as effective and far safer. The idea that a pension is an investment anticipating high returns and being promised based on that high return makes no sense financially. The whole idea is idiotic because the markets are a gamble.

If i could go to the casino and be gaurenteed i leave with 10% more every visit i would quit my job today and go every day. That sounds pretty dumb doesn't it?

[Danny]

There is no way that City of Chicago will go into Bankruptcy! The corrupt Alderman Board got it under control.