Posts Tagged ‘south’

Are Public Pensions Lying About Assets Too?

Public pension systems are understating the value of liabilities for benefits accruing in their plans primarily by using ridiculously high investment assumptions resulting, in the case of New Jersey, in reported liabilities of $124 billion when they really are $186 billion ($214 billion if COLAs return).  But there seems to be chicanery on the asset side of the ledger as well – aside from using a fictional ‘actuarial’ value that always seems to be higher than the market value.

In today’s New York Times there is a story about South Carolina’s retirement system investing half of its money in alternative investments on the recommendation of their former investment chief, a civil servant who made half-a-million dollars a year, drove a Lamborghini, and didn’t put a lot in his calendar.   I looked at the latest valuation report for the South Carolina plan and…….

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