SALES, RENTALS & LAYAWAYS

PROTECTING EVERYTHING THAT HAS EVER BEEN OF VALUE TO YOU

Open 24/7/365

We Have A Life-Time Warranty /
Guarantee On All Products. (Includes Parts And Labor)

Public Pensions Miss Fantastic Bitcoin Gains (#GotBitcoin?)

Trumponomics Fail!

Public pension plans fell short of their projected returns this year, adding to the burden on governments struggling to fund promised benefits to retired workers. Public Pensions Miss Fantastic Bitcoin Gains (#GotBitcoin?)

Public plans with more than $1 billion in assets earned a median return of 6.79% for the year ended June 30, the lowest since 2016

Public plans with more than $1 billion in assets earned a median return of 6.79% for the year ended June 30, the lowest since 2016, according to Wilshire Trust Universe Comparison Service data released Tuesday. Public pension plans project a median long-term return of 7.25%, according to data collected by Wilshire Associates in 2018.

Each year, pension funds must make this estimate on how much they expect to earn on investments.

The projection determines the amount the government that is affiliated with the pension fund must pay into it.

Robust returns reduce the need for government support. When returns fall short, however, the amount the government must contribute increases, potentially diverting money from other public services.

“I think a lot of plans fell a little bit short,” said Becky Sielman, principal and consulting actuary at Milliman. “Bonds generally did well, but there are other asset classes that didn’t do as well.”

Overall, a decades-long bull market in stocks has been good for pensions. Large public plans had five years of double-digit returns and a 10-year annualized return of 9.7% for the year ended June 30, according to Wilshire.

But those returns still haven’t brought pension funding levels close to what is needed to pay for future benefits. State and local pension plans have about $4.4 trillion in assets according to the Federal Reserve, $4.2 trillion less than they need to pay for promised future benefits. Contributing factors include increasing lifespans, overoptimistic return assumptions, and government decisions to skimp on pension payments. Record losses in 2009, when pension funds fell by a median 19.19% according to Wilshire, also played a role.

In hopes of reducing their unfunded liabilities, pensions have pushed further into riskier, less traditional investments over the past decade. Large public pension plans had a median 11.47% of their assets in alternative investments such as private equity for the year ended June 30 and a median 4.45% of their investments in real estate. Public Pensions Miss Fantastic, Public Pensions Miss Fantastic

 

Related Articles:

Trump Pays No Taxes Unlike His Financially-Illiterate Followers

Warren Buffett Dumps $1Billion In Stocks (#GotBitcoin?)

The S&P 500 Suffered Its Worst Week Of 2019 — And Its Not Finished Falling (#GotBitcoin?)

Trumponomics Results In Lowe’s Laying Off Thousands Of Workers (#GotBitcoin?)

Families Go Deep In Debt To Stay In The Middle Class (#GotBitcoin?)

Fed Lowers Interest-Rate To Stimulate Sluggish Economy (#GotBitcoin?)

Global Manufacturing Recession Weighs On US Economy (#GotBitcoin?)

Financial Crisis Yields A Generation Of Renters (#GotBitcoin?)

Falling Real Yields (0.241% ) Signal Worry Over U.S. Economy (#GotBitcoin?)

Donald Trump’s WH Projects $1 Trillion Deficit For 2019 (#GotBitcoin?)

U.S. Home Sales Stumble, As Pricey West Coast Markets Suffer Declines (#DumpTrump)

Lower Rates Have A Downside For Bank’s Mortgage-Servicing Rights (#GotBitcoin?)

Central Banks Are In Sync On Need For Fresh Stimulus (#GotBitcoin?)

Weak Corporate Earnings Signal A Weak Economy (#GotBitcoin?)

Price of Gold, Indicator Of Inflation And Recession Surges (#GotBitcoin?)

Recession Set To Materialize In Approximately In (9) Months (#GotBitcoin?)

A Whiff Of U.S. Recession Is In The Air Again. Credit Trumponomics

Trumponomics Fails To Deliver As Truckers Cut Payrolls, Job Openings Fall & Tech Hiring Cools (#GotBitcoin?)

Trump Calls On Fed To Cut Interest Rates, Resume Bond-Buying To Stimulate Growth (#GotBitcoin?)

Fake News: A Perfectly Good Retail Sales Report (#GotBitcoin?)

Anticipating A Recession, Trump Points Fingers At Fed Chairman Powell (#GotBitcoin?)

Affordable Housing Crisis Spreads Throughout World (#GotBitcoin?) (#GotBitcoin?)

Los Angeles And Other Cities Stash Money To Prepare For A Recession (#GotBitcoin?)

Recession Is Looming, or Not. Here’s How To Know (#GotBitcoin?)

How Will Bitcoin Behave During A Recession? (#GotBitcoin?)

Many U.S. Financial Officers Think a Recession Will Hit Next Year (#GotBitcoin?)

Definite Signs of An Imminent Recession (#GotBitcoin?)

What A Recession Could Mean for Women’s Unemployment (#GotBitcoin?)

Investors Run Out of Options As Bitcoin, Stocks, Bonds, Oil Cave To Recession Fears (#GotBitcoin?)

Goldman Is Looking To Reduce “Marcus” Lending Goal On Credit (Recession) Caution (#GotBitcoin?)

Our Facebook Page

Your Questions And Comments Are Greatly Appreciated.

Monty H. & Carolyn A.

Go back

Leave a Reply