World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Andy Kessler: The Pension Rate-of-Return Fantasy
Keywords:
Kessler says the assumption that pension systems such as Calpers (California Public Employees Retirement System), can make returns of 7.5% is fantasy considering that U.S. Treasury bonds are yielding 1.74%. Calpers reduced its expected rate of return on its portfolio to 7.5% fom 7.75% in June 2012. Public pension funds in Illinois use 8.18% for expected returns. U.S. public companies with defined benefit pension plan assets of $1.3 trillion use an expected rate of return of 7.5%, even though these assets have return of 5.6% since 2000. Kessler's estimate for expected rate of return is about 3%- fixed income yielding negative real rates of return and pulling returns down. For equities he estimates return at the total of inflation component at +2%, productivity component at +2%, and multiple expansion at -1% because interest rates are at zero.
AT&T and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
AMR (American Airlines) Pension Fund
11/21/2006
Grouped Articles
U.S. Agency Ramps Up Its AMR Pension Fight
Wall Street Journal 01/31/2012
American Needs Merger Flight Plan
Wall Street Journal 02/09/2012
AMR Posts Big Loss, Reshuffles Managers
Wall Street Journal 02/16/2012
American Airlinesâ Parent Says It Will Freeze Most Pension Plans
New York Times 03/07/2012
New York Times 04/27/2012
Steven Pearlstein: Two can play the airline bankruptcy game - The Washington Post
Washington Post 04/29/2012
Dow Chemical and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
GM (General Motors) and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
Grossly underfunded state pension funds in the U.S.
08/27/2010
Grouped Articles
Pension Pinch Busts City Budgets
Wall Street Journal 10/30/2013
Illinois Pension Fix Faces Political Test
Wall Street Journal 12/01/2013
Illinois Legislature Approves Retiree Benefit Cuts in Troubled Pension System
New York Times 12/03/2013
Public Pensions and Our Fiscal Future
Wall Street Journal 08/27/2010
Illinois Supreme Court Rejects Lawmakers’ Pension Overhaul
New York Times 05/08/2015
Public Pension Funds Roll Back Return Targets
Wall Street Journal 09/05/2015
Transparency and disclosures of the actual condition of state pension funds.
10/16/2010
Effors to bring realistic accounting and annual disclosures.
Grouped Articles
American states' pension funds: A gold-plated burden
Economist 10/16/2010
GOP Bill Takes Aim at Pension Disclosures
Wall Street Journal 02/22/2011
California Still Dreamin' on Pensions
Wall Street Journal 03/17/2011
Wall Street Journal 03/23/2011
State Pension Plans Lose Ground
Wall Street Journal 04/26/2011
States Lean on Public Workers for Bigger Pension Contributions
New York Times 06/15/2011
Verizon and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
The pension overhaul in California under Governor Brown
01/05/2011
Grouped Articles
California’s New Problem: Too Much Money
New York Times 05/25/2013
Brown Set for Victory in California Budget Fight
Wall Street Journal 06/12/2013
Brown Cheered in Second Act, at Least So Far
New York Times 08/16/2013
Jerry Brown is spending more on ballot measures than on his own campaign - The Washington Post
Washington Post 10/24/2014
Deal Reached to Overhaul California Pensions
Wall Street Journal 08/28/2012
Recession-bruised states' revenue sank 30 percent in 2009, Census Bureau reports
Washington Post 01/05/2011
Orange County Employees Retirement System and CALPERS. Contrasting approaches and results.
10/16/2009
Steve Delancey and the small pension fund that runs OCERS feel vindicated with only 8% losses compared to 21% for CALPERS even as the DJ averages passed 10,000 in October 2009.
Grouped Articles
Calpers Pulls Back From Hedge Funds
Wall Street Journal 07/24/2014
Calpers, Nation's Biggest Pension Fund, To End Hedge Fund Investments
New York Times 09/15/2014
Orange County Dodged Bullet by Avoiding Calpers
Wall Street Journal 10/16/2009
Calpers Weighs Booting BlackRock
Wall Street Journal 11/25/2009
New York Times 04/27/2012
Calpers Misses Big on Investment Target
Wall Street Journal 07/17/2012
Boeing and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
Ford Motor and unfunded pension liabilities
02/03/2013
Ford Motor's unfunded pension liabiliies reached $18 billion in 2013 after the company reduced the discount rate to reflect lower corporate bond yields. Ford plans to put $5 billion in its pension plan in 2013, close to what it is spending on plants, equipment and new models.
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
Chrysler and unfunded pension liabilities
02/03/2013
Grouped Articles
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
GM's (General Motors) efforts to address problems with pension obligations for salaried retirees and UAW retirees in 2012-2013
06/02/2012
GM's efforts to strengthen its balance sheet include buying a group annuity contract for $39 billion for $36 billion in pension obligations to salaried retirees. The annuity contract is from Prudential Financial Inc. and was negotiated in May 2012.
Grouped Articles
GM Acts to Pare Pension Liability
Wall Street Journal 06/02/2012
G.M. Says It May Propose Pension Buyouts to Union
New York Times 06/12/2012
Wall Street Journal 08/25/2012
Low Rates Force Companies to Pour Cash Into Pensions
Wall Street Journal 02/03/2013
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
How U.S. states overstate the extent to which pensions are funded.
10/16/2010
Using a discount rate of 4% (for government borrowing costs) would correctly show the extent to which pensions are funded in Illinois, than the rate currently used rate of 8%. Using Illinois methods Dutch plans would be 200% funded says an expert in Holland. With lower savings of American workers as they approach retirement adequately funded pension systems are critical to the safety net.
Grouped Articles
Pension Pinch Busts City Budgets
Wall Street Journal 10/30/2013
Illinois Pension Fix Faces Political Test
Wall Street Journal 12/01/2013
Illinois Legislature Approves Retiree Benefit Cuts in Troubled Pension System
New York Times 12/03/2013
American states' pension funds: A gold-plated burden
Economist 10/16/2010
Wall Street Journal 03/05/2012
Chicago Mayor Seeks Alterations to Repair Badly Underfunded Pension Plan
New York Times 04/01/2014
Funding the budget and pension deficit in the U.S state of Illinois
10/16/2010
Grouped Articles
Pension Pinch Busts City Budgets
Wall Street Journal 10/30/2013
Illinois Pension Fix Faces Political Test
Wall Street Journal 12/01/2013
Illinois Legislature Approves Retiree Benefit Cuts in Troubled Pension System
New York Times 12/03/2013
American states' pension funds: A gold-plated burden
Economist 10/16/2010
Chicago Mayor Seeks Alterations to Repair Badly Underfunded Pension Plan
New York Times 04/01/2014
For Some Bond Investors, Chicago Isn’t Their Kind of Town
Wall Street Journal 04/02/2015
The wildly underfunded pension system of the American state of New Jersey.
09/30/2010
Need to increase the retirement age to 65 from 62, and increase pension contributions to 8.5%, says Governor Christie of New Jersey. With the lower savings of workers in the U.S. as they approach retirement, adequately funded pension systems are critical to the safety net.
Grouped Articles
Pension Pinch Busts City Budgets
Wall Street Journal 10/30/2013
Illinois Pension Fix Faces Political Test
Wall Street Journal 12/01/2013
Illinois Legislature Approves Retiree Benefit Cuts in Troubled Pension System
New York Times 12/03/2013
BusinessWeek 09/30/2010
Public-sector pensions: Three-trillion-dollar hole
Economist 10/16/2010
American states' pension funds: A gold-plated burden
Economist 10/16/2010
Puerto Rico's problems with its pension funds
11/26/2012
Grouped Articles
$2 Billion Deal in Works for Puerto Rico
New York Times 01/21/2014
Puerto Rico Gets Break With Bonds
New York Times 03/10/2014
Puerto Rico Buys Some Time With Bond Sale
Wall Street Journal 03/12/2014
Wall Street Journal 07/03/2015
Treasury Plan for Puerto Rico Favors Pensions Over Bondholders
New York Times 02/24/2016
Puerto Rico Races to Rescue Its Pension Fund
New York Times 11/26/2012
California's underfunded pension system
04/10/2013
Grouped Articles
Andy Kessler: The Pension Rate-of-Return Fantasy
Wall Street Journal 04/10/2013
Giant California Teachers Pension, Calstrs, Posts Worst Result Since 2008 Crisis
WSJ 07/19/2016
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us