athena53
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 11, 2014
- Messages
- 7,384
This just in.
http://www.pionline.com/article/201...ce-object-to-paper-on-public-plan-liabilities
Briefly- a joint Task Force of actuaries from the Society of Actuaries (mostly Life/Pension types) and the American Academy of Actuaries (an umbrella organization that's the public interface for all US-based actuarial organizations) produced a paper warning about how seriously underfunded most public plans are due to laws permitting overly-optimistic rate of return assumptions. The AAA and the SOA leadership have decided not to publish it.
Right now, these pensions can be valued using a long-term average return rate as high as 8%; the paper advocated using a much lower rate, equivalent to the return on "risk-free" investments such as Treasuries, which would result in conclusions of serious under-funding for many plans.
http://www.pionline.com/article/201...ce-object-to-paper-on-public-plan-liabilities
Briefly- a joint Task Force of actuaries from the Society of Actuaries (mostly Life/Pension types) and the American Academy of Actuaries (an umbrella organization that's the public interface for all US-based actuarial organizations) produced a paper warning about how seriously underfunded most public plans are due to laws permitting overly-optimistic rate of return assumptions. The AAA and the SOA leadership have decided not to publish it.
Right now, these pensions can be valued using a long-term average return rate as high as 8%; the paper advocated using a much lower rate, equivalent to the return on "risk-free" investments such as Treasuries, which would result in conclusions of serious under-funding for many plans.