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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