While the market downturn that accompanied the Great Recession reduced the value of assets held by public pensions, it is hardly the crisis touted by some conservative critics. Unrealistic projections that inflate pension liabilities are stoking fears that future taxpayers will inherit large unfunded pension liabilities absent some sort of intervention. But the critique is based on the assumption that pension funds will earn a very low rate of return on pension assets. Accepting these alternative valuations could spur unnecessary drastic actions, from doubling contributions to pensions to scrapping them altogether in favor of 401(k) plans.
Maybe we should order up an Irish Senator from Massachusetts, one of those with the windblown hair. Then we can just expect hopeful times as we swoon with his radiance, and watch him get all the girls.
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