Think about it this way.
After 8 years and a 230% stock market
advance the pension funds of Dallas, Chicago, and Houston are in severe
trouble. But it isn’t just these municipalities that are in trouble, but
also most of the public and private pensions that still operate in the
Currently, many pension funds, like the one in
Houston, are scrambling to slightly lower return rates, issue debt,
raise taxes or increase contribution limits to fill some of the gaping
holes of underfunded liabilities in their plans. The hope is such
measures combined with an ongoing bull market, and increased participant
contributions, will heal the plans in the future.
This is not likely to be the case.
This problem is not something born of the last “financial crisis,” but rather the culmination of 20-plus years of financial mismanagement.