Tsunami Warning Brace Now: These Pension Problems Will Come Crashing Down on Gold and Silver
SilverDoctors.com
August 3, 2017
Brace yourself because the water has now receded in the land of retirement.
Here’s the problems and this is what happens.
SDNote: Gold is up 10.38% and silver is up 4.68% so far in 2017
from Zero Hedge
We’ve frequently argued that public pension funds in the U.S. are nothing more than thinly-veiled ponzi schemes with their ridiculously high return assumptions specifically intended to artificially minimize the present value of future retiree payment obligations and thus also minimize required annual contributions from taxpayers…all while actual, if immediately intangible, underfunded liabilities continue to surge.
As evidence of that assertion, we present to you the latest public pension analysis from the Center for Retirement Research at Boston College. As part of their study, Boston College reviewed 170 public pension plans in the U.S. and found that their average 2016 return was an abysmal 0.6% compared to an average assumed return of 7.6%.
Meanwhile, per the chart below, the average return for the past 15 years has also been well below discount rate assumptions, at just 5.95%.
The Rest…HERE
