(and to add the the public pensions would be illegal in private sector…)
Private-sector companies are no longer allowed to use assumed returns when calculating their pension-fund liabilities on their balance-sheets. They have to use corporate-bond yields. The contrast makes it appear as if public-sector pensions can be delivered on the cheap. “The accounting suggests that governments can provide pension benefits at half the cost of a private-sector fund,” says Mr Biggs
( Or that the stock market crash isnt the overriding problem of public pensions)
21 states failed to make their full contribution to their pension funds over the past five years, according to Eileen Norcross of George Mason University in Washington, DC.
