This is a premium article. Please subscribe to view all content.

 

Failure of new pension accounting standards show in Chicago funds

Aug 10, 2016

The public pension world mostly cheered the arrival of new pension reporting standards from GASB — the Governmental Accounting Standards Board. A meaningful step towards more realistic reporting on pension deficits seemed here.

In particular, a central problem has been that pensions typically assume very high rates of return on investments they hold, which have been widely criticized as unrealistic. That number has a massive impact on the reported health of pensions, so overly optimistic return assumptions have hidden the severity of the public pension crisis. Forcing actuaries and accountants to use a lower return was widely seen as the…

No subscription? You’re missing out.

Join us. There has never been a more critical time to Reboot Illinois...

share to facebook share to twitter comment
 
Comments
Be the first to respond to this quote.
Add a Comment commt
Loading...