How Did the NYT Decide that 6.75 Percent Pension Returns are "Strong?"

That is what millions are asking after reading its piece on the financial status of Detroit's pensions following its bankruptcy. At one point the piece tells readers:


"Contributions to the system will not be nearly enough to cover these payouts, so success depends on strong, consistent investment returns, averaging at least 6.75 percent a year for the next 10 years. Any shortfall will have to ultimately be covered by the taxpayers."


Actually the returns to the pension do not need to be consis...

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Published on November 12, 2014 02:41
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