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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 03/03/2008 : 19:57:07
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Excerpt:
More pension officials are hiring outside managers who favor alternative investments to run their funds, indicating ``the proportion in something like Treasuries would be going down,'' Clifford said.
The $240 billion California Public Employees' Retirement System, the largest U.S. pension plan, agreed at a Feb. 19 board meeting to hold between 0.5 percent and 3 percent of its assets in commodities, spokesman Clark McKinley said. ....U.S. states owe an estimated $2.73 trillion in pension and benefit payments to retirees over the next 30 years, according to a December report from the Pew Center on the States.
They are short almost 27 percent, or $731 billion, of that amount. The Government Accountability Office said last week that 58 percent of 65 large state and local pension plans were adequately funded in 2006, down from 90 percent in 2000.
Such studies may overstate the health of pensions because they are allowed to include expected returns in determining their funding gap, said Mark Ruloff, director of asset allocation at Arlington, Virginia-based consultant Watson Wyatt Worldwide Inc.
That gives them further motive to ``get rid of Treasuries'' and buy stocks, he said.
....Looks like the only way you can have a golden retirement is to have gold in your retirement.
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US Bonds losing their appeal to pensions
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