Despite pension fund investment gains in 2010, taxpayers still owe state and municipal workers trillions of dollars for promised benefits no matter how much funds earn during the next 30 years.
According to data for the 4th Quarter released Thursday by the U.S. Census, cash and security holdings of the top 100 public pension plans gained 7.6 percent in 2009, the fifth consecutive quarterly year-over-year increase.
Census reported the funds reached “the highest level since the second quarter of 2008.”
Unfortunately, pension fund managers promise taxpayers and workers they will earn about 8 percent a year every year forever, and a loss of about 28 percent at the bottom of the recession would require a 62.5 percent gain the next year to fulfill their promise.
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