I think there is ample evidence to show they have not been done correctly. Similarly I believe it is impossible to correctly forecast the cost of future liabilities more then a year or two in advance and then accurately predict that a given return will cover those liabilities. To compound that problem and guarantee a given return is foolish. Furthermore there is no incentive for pensions to be run correctly given that they will be bailed out by state and now even federal coffers. Why not take the higher risk for a better return? We don’t make enough to fund the liability with a less risky yield, and if we lose the money it will be covered so what the hell does it matter?
Also you may want to read up on the financial health of the SD pensions especially with respect to unfunded liabilities.
Similarly given the financial health of most large municipalities across the nation with respect to pensions and unfunded liabilities, evidence would indeed corroborate that pension costs are perpetual expenses, and unfunded liabilites have sky-rocketed. The ony strategy the municipalities have is to dump retirees off to Obamacare.
I would rather pay for the service as provided. If I don’t like the cost I will haul the crap to the dump and pay the dump fees.
