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Public pension plans rely on speculative investment predictions

By tovarichpeter   Follow   Sun, 29 Jul 2012, 10:52am   332 views   1 comment
In South San Francisco CA 94080   Watch (1)   Share   Quote   Permalink   Like   Dislike  

http://www.contracostatimes.com/news/ci_21183540/daniel-borenstein-public-pension-plans-rely-speculative-investment

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1. Bellingham Bill Follow Befriend 30 threads 1,488 comments Bellingham, WA Premium

   1   11:47am Sun 29 Jul 2012   Share   Quote   Permalink   Like   Dislike   Well duh. CalPERS and CalSTRS need 7%+ pa compounding returns. They got 1.5% this past year. http://research.stlouisfed.org/fred2/series/DGS10 Don't know who they're going to get the shortfall from, and that will be hundreds of billions by the time the baby boom passes on in ~2050. This is going to be a big story for the state this decade and next. The missing 6% yield for the past year amounts to $20B+ lost accruals to their $380B retirement hoard. Somebody's got to pay that gap eventually.