From Todd Clark, chairman of the Houston Firefighters’ Relief and Retirement Fund, on the pension fund return assumptions his fund is using:
We strongly believe, and past history shows, we can continue to achieve the 8.5 percent long term.
The Wall Street Journal, “Pensions Brace for Lower Returns,” September 8-9, 2015
The 30-year US government bond is yielding 2.88 percent, and most measures of valuation for the US stock market, even after its recent slide, are still close to historic highs. Many pension funds are lowering their return assumptions to 7 or 7.5 percent. SLL thinks even those assumptions are high. The higher the assumption, the less that must be contributed to the fund. It looks like Houston firefighters may end up getting stiffed on their relief and retirement.
*September 8-9, 1915
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Good editors are so hard to find, and the one I’ve got (me) occasionally slacks off. Thanks for catching it; the change has been made.
was me in another life