Saw this coming long, long ago! A few of us that have been waving the white flag on PERA for years! I wonder if this would have been in today's headlines if the billion dollar tax increase had passed? $23 billion in unfunded liability? How in the heck did that happen? Astonishing.
The fund has $23 billion in unfunded liability — money it owes to current and future retirees over the next 30 years but does not have in its account today. Friday's vote means the pension fund's unfunded liability will increase by about $6 billion to $29 billion, Stapleton estimated.
10 year Treasuries Yield around 2-3%. Rates are expected to stay low so we can continue to print tons of money. Looking backward at optimistic historical returns for pension guesses, and looking forward for zero interest rates for massive new borrowing. What could possibly go wrong with that? Geniuses!
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
As I understand it that 7.5% is not a guaranteed return. It is the projected return that they use to calculate how funded or underfunded they will be in the future.
For years I have read of pension funds overestimating their projected returns to kick the future underfunding can down the road. That was in bad market times. With recent markets I would think the under funding would be shrinking.
