Who Woulda Thought It: Defined-Benefit Pensions Don’t Do Well in a Market Crash!
Given the numbers reported in this Los Angeles Times story from today…
California’s two huge government pension funds reported whopping annual losses today of about one-quarter of their portfolios.…would anyone like to volunteer to walk Anchor Rising’s readers through the explanation, heard from some quarters, of how the financial meltdown has “proven” that 401(k)s and individual Social Security accounts are unworkable, while not proving the same thing about defined-benefit pension plans?
The California Public Employees’ Retirement System, the largest in the nation, today posted a preliminary drop of $56.2 billion for the fiscal year ended June 30. The second-ranked fund, the State Teachers’ Retirement System, reported a preliminary loss of $43.4 billion.