According to a report by BNY Mellon Asset Management, the US Corporate Pension deficits widen in June, falling by 6 percentage points to 74%. Unfortunately this is going to become front and center news sooner than we think.
Public and corporate pension plans (defined benefits especially) are an accident waiting to happen. Here is a little overview. Most pension plans operate in a perfect storm: most assume 8% returns (not going to happen); low interest rates (can’t have your cake and eat it too!); horrible demographics. How big is the problem? In the US, the states public pensions are underfunded …Read More