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WashPost |
Steep Losses Pose Crisis for Pensions
- Within 15 years, public systems on average will have less half the
money they need to pay pension benefits, according to an analysis by
Pricewaterhouse Coopers. Other analysts say funding levels could hit that
low within a decade.
- After losing about $1 trillion in the markets, state and local
governments are facing a devil's choice: Either slash retirement benefits
or pursue high-return investments that come with high risk.
- In Ohio, for instance, the teachers pension system reported that
it would take 41 years for its investments to catch up with the costs of
meeting its obligations to retirees. That was before the worst of the financial
crisis.
- During the last fiscal year, Ohio's fund lost 31 percent. Its most
recent annual report detailed how long it would now take for its investments
to put the fund back on track. Officials simply said: "Infinity."
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