View Single Post
Old 01-04-2013, 16:40   #5
jpa
CLM Number 268
Charter Lifetime Member
 
Join Date: May 2001
Location: Las Vegas NV
Posts: 10,117
Send a message via AIM to jpa Send a message via Yahoo to jpa
NV PERS had a return for 2012 of 16%. Since 1984 they have a net return of 9.3%, also greater than the 8% expected. So does that mean I should get a refund of my contributions since they did better than their expected rate of return? If there was a shortfall you would expect that I would have to contribute more, right?

The problem with a lot of pension plans (CALPERS included) is that the money wasn't put into the plan to be invested as required. Instead the lawmakers wrote an IOU and spent the money elsewhere. Since that money wasn't invested, there's no way for it to achieve the rate of return required to sustain the system.

This kind of misappropriation committed by politicians across the country would land everyone involved in prison if it were done in private business. If the systems are underfunded and going broke it's because of mismanagement at the highest level, not because they're unsustainable.
__________________
Big Dawg #1408, TT #1408
Moto Club #1408, GSSF Member, NRA RSO
NRA Benefactor Member
jpa is offline   Reply With Quote