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  1. #1
    Registered User New Member
    Posts
    10

    Pension funds are pins schemes

    The big lesson from the mission with the Dallas police pension fund highlights something we all suspected. Pension funds are ponzi schemes.



    So if you work for a state government or a city, don't take pension increases instead of wage increases. Always take the money today. And trust yourself to do better with it then the government.

  2. Pension funds are pins schemes
  3. #2
    Registered User Semi Pro Member
    Posts
    269
    I assume you are referring to the mess in Dallas. But it is not just there. California, Illinois, Chicago, South Carolina and many other states and municipalities have grossly underfunded pension schemes.

    Much more was promised than the tax base can deliver - especially if they want some services level of services and reasonable tax rates.

    In that respect, they really are ponzi schemes. Because what cannot be paid will not be paid.

  4. #3
    Registered User Semi Pro Member
    Posts
    382
    There is no winner here. Employees were promised something. But taxpayers should not have to suffer enormous property tax hikes either.

    The politicians who deceived everyone will never be punished.

  5. #4
    Registered User Senior Member
    Posts
    101
    It's only going to get worse, as they all maintain rosier than I would anticipate return expectations. ZIRP* is a pension fund killer.

    Is it LIRP (low interest rate policy) now that we had a second rate hike?

  6. #5
    Registered User Enthusiast
    Posts
    51
    my understanding is that calpers may change their expected return levels ... which will reveal massive underfunding. yikes!

  7. #6
    Registered User Semi Pro Member
    Posts
    270
    What does it say about me that I am bothered the title of this post is "pins" and not "ponzi". Oh auto-correct, you strike again. At one of my nerves, that is.

  8. #7
    Registered User Junior Member
    Posts
    33
    Quote Originally Posted by garyol View Post
    my understanding is that calpers may change their expected return levels ... which will reveal massive underfunding. yikes!
    If Calpers lowers its expected returns, a lot of California cities will be hit with bigger than expected bills for the shortfall.

    More service cuts in the cards?

  9. #8
    Registered User Semi Pro Member
    Posts
    270
    Maybe pension funds would function better if they were not taking bribes for blow and prostitutes?

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