If you are a public worker or have a public pension this is an important article. Matt Taibbi is not a succinct writer, so I have summarized it…..but, please read this article! The "unfunded liability" crisis of public pensions has been greatly exaggerated as an excuse for politicians to invest in hedge funds. Politicians are using the phony crisis as an excuse to intercept taxpayer money allocated for the COLA’s and pensions of public workers and investing it into risky hedge funds. These funds cost your state much more to obtain and manage than simple index funds, and although they show impressive profits initially they underperform in the long term. Ironically, those who promote and operate them are lobbying against defined-benefit plans for public workers and supporting anti-union political movements. Moreover, states are passing laws to prevent citizens from obtaining information about these investments. They are also lying about failure to make legally required pension fund contributions in bond-disclosure documents, which constitutes securities fraud. And, so far they are getting away with all of it.
Posted on: Thu, 26 Sep 2013 21:03:42 +0000
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