“U.S. public pensions are $4.6 trillion short of the amount of assets needed to cover projected liabilities, an advocacy group said, more than twice what Moody’s Investors Service estimated this month.
The average plan is 41 percent funded, State Budget Solutions said in a report today. The Alexandria, Virginia, group’s partners include the American Legislative Exchange Council, which advocates “conservative public policy solutions,” the Freedom Foundation and the State Policy Network, which is composed of “free-market think tanks.”
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State Budget Solutions said its calculations, based on “fair market value and risk-free investment returns…
They got the big headline number they wanted. All they had to do was create an imaginary world where pension fund managers put 100% of their money into treasuries.