Still Rosy After All These Years - Investors.com
'Live in the past, borrow from the future' could be the motto for public retirement funds.
Their forecasts are tinted by '90s nostalgia, and they favor short-term politics over the advice of actuaries.
If only we all could make money the Calpers way.
The California Public Employees Retirement System, at $227 billion the nation's biggest public-worker pension fund, gave state and local governments a gift worth several hundred million dollars earlier this month. It did so without writing a check or otherwise spending a penny.
All it did was decide against changing a single, but crucial, number — its expected annual investment return.
By a 10-to-3 vote, the Calpers board on March 16 voted to stick with a forecast of 7.75%. Its chief actuary had recommended taking the number down a notch to 7.5%."
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