Originally Posted by 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.
In other words see Stockton for what not to do with a city. They built stadiums and convention centers when nobody wants to go there. Trust me, I grew up there, if you find yourself on I-5 or 99 driving through Stockton, don't bother getting off the freeway unles you need gas or food. And if you get off dont get off any exit other than Ben Holt or Hammer.
It's getting so bad in Stockton they are loosing so many officers they will have to pay the Feds back money they took for funding officer positions. The only people who apply can't meet the minimum standards.