Illinois Teachers’ Retirement Fund Playing With Fire

December 19, 2011

Already a poorly performing and underfunded pension fund, Illinois’ Teachers’ Retirement System is doubling down on incompetence by putting a full third of its assets into high-risk securities.

According to Crain’s Chicago Business:

Gunning for bigger returns exposes the plan to the possibility of bigger losses, further jeopardizing the pensions of 362,121 former and current teachers. The system, which has just 46.5% of the assets it needs to cover promised payments to retirees, is counting on an 8.5% annual return, which many portfolio managers and investors, including Berkshire Hathaway Inc.’s Warren Buffett, say is unrealistically high.

This is unacceptable. ¬†Illinois’ teachers should be concerned. ¬†And motivated to speak out.

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