NYTimes: Public Pensions Faulted for Bets on Rosy Returns

From The New York Times:

Public Pensions Faulted for Bets on Rosy Returns

Public pension funds in the United States are struggling to lower their assumed rates of return, which are criticized as too lofty in the current market environment.

http://nyti.ms/Ltua82

" "The actuary is supposedly going to lower the assumed reinvestment rate from an absolutely hysterical, laughable 8 percent to a totally indefensible 7 or 7.5 percent," Mr. Bloomberg said during a trip to Albany in late February. "If I can give you one piece of financial advice: If somebody offers you a guaranteed 7 percent on your money for the rest of your life, you take it and just make sure the guy's name is not Madoff."

Public retirement systems from Alaska to Maine are running into the same dilemma as they struggle to lower their assumed rates of return in light of very low interest rates and unpredictable stock prices."
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