So If The Books Are Cooked And The Return Rate Is Underestimated
… Mr. Valletta,
Paul Valletta of the State Association of Firefighters said [General Treasurer Gina] Raimondo “cooked the books” with actuarial assumptions and conservative market projections that exaggerate the pension system’s problems. He accused her of supporting “draconian” changes to the retirement system to raise her political profile.
then you should have no problem immediately converting your members from a pension to a 401(k). ‘Cause if the market return rate on pension/retirement funds is actually north of 7.5%, as you are asserting, obviously, the defined benefit thing is shortchanging public employees.
Right? Shall we prepare the conversion paperwork …?
[Thanks to a Dan Yorke caller for pointing this out today.]