Wednesday, September 2, 2015

Are public pension funds betting on unrealistic returns?

The New York Times had a great piece yesterday about public pension funds counting on interest rates that many experts think are unrealistic in today's economy.

Are public pension funds betting on unrealistic returns?

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The New York Times had a great piece yesterday about public pension funds counting on interest rates that many experts think are unrealistic in today's economy.

From the story:

While Americans are typically earning less than 1 percent interest on their savings accounts and watching their 401(k) balances yo-yo along with the stock market, most public pension funds are still betting they will earn annual returns of 7 to 8 percent over the long haul, a practice that Mayor Michael R. Bloomberg recently called “indefensible.”

For the full report, click here. And for the record, the Philly municipal pension fund is banking on a return of 8.1 percent. Last fall, Finance Director Rob Dubow told us that that expected return was not unrealistic, given the fund's long term performance.

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About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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