[quote=SD Realtor]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. [/quote]
Bolderdash. Annuity companies have been doing it for generations. You want to argue that pensions are too high? Fine. You may have a point. You want to argue that pension funds and current funding have been mismanaged? Fine. You’re probably right. You want to argue that return assumptions have been too high? Fine. It’s arguable. (The city pension fund has earned 8% per year the last decade.) None of those refute the fact that annuity companies have accurately and successfully predicted future costs, some for over 100 years.
