coming to a city near you................From Illinois Policy Institute
''On Thursday, the Teachers' Retirement
System announced its annual investment returns for fiscal year 2012. You
may recall that it was predicting 8.5 percent returns.
So what kind of returns did it actually get? A meager 0.76 percent. For comparison, the S&P 500 grew 7.39 percent during fiscal year 2012, while the Dow Jones Industrial average grew 7.92 percent.
''Ultimately, there are only two numbers
that matter: the amount of money the pension fund will pay out for
earned benefits, and the amount of money it has on hand. Between now and
2045, TRS will pay $376.5 billion to retired teachers. It has just $36.3 billion
on hand. In order for these assets to cover future payouts, TRS would
need to see average investment returns of more than 18.5 percent per
year.''
''The simple fact is that TRS is broke. Under new accounting rules,
TRS has less than 23 percent of the money it should have in the bank
today in order to make its pension payments. The system doesn't even
have enough money on hand to pay out benefits to the people who have already retired. Pension experts and TRS's own actuaries agree: the fund could soon be insolvent.''
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