Public Pension Doomsday Clock Stops as Funds Gain 15 Percent
- Government funds have best calendar year return since 2013
- Median public pension return over five years is 9.1 percent
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U.S. state and local governments have good reason to root for stocks to rebound from the crash.
The record-setting rally had muted warnings since the financial crisis by investment consultants, academics and public officials that government retirement plans couldn’t meet their targeted returns of seven to eight percent annually. The median public pension has exceeded those assumptions over the past five years, returning an annualized 9.1 percent, according to the Wilshire Trust Universe Comparison Service.