Headline in Investment News. In an apparent first, a public pension plan files for bankruptcy Northern Mariana Islands plan in deep trench, with $268M in assets, $911M in liabilities
Yes we have seen some corporate plans crash like airlines- Eastern, Delta and others.
This is a public pension. Feels like a shot has been fired over the bow of the ship.
Hi Scott! Since you read Investment News, it sounds like you're likely aware of some of the factors that contributed to the problems many pension funds are facing, public and private. Those who under funded plans based on the feeling that high-return markets would continue forever maybe never took a course on how cash-flows affect investment returns in down markets. Some basic stress-testing may have been of some value, ya' think?