Pension funds around the country face massive underfunding problems. But some, especially the pension funds’ administrators, argue that the problem will fix itself with market rebounds. But this scenario is unlikely to happen without fundamental pension reform.
A new report in Michigan looks at the possibility that the state’s teacher pension fund will grow its way out of underfunding. The results are not encouraging. The state would need 11.7 percent to 12.7 percent average returns for a decade in order to become fully funded.
More details at Michigan Capitol Confidential.