Experts say Florida overstates future pension returns
An overly optimistic investment outlook could be setting up a pension collapse, but two new reports say scaling back could leave Florida taxpayers on the hook for billions.
That's because Florida and other states plan for what a growing number of economists and investors say is an unrealistic rate of return on their investments that hides the true cost of public pensions.
The reports, prepared by state advisers, come as pension funds across the country are recovering from losses during the financial crisis, facing shortfalls and rethinking how they gauge their long-term viability. Corporate pension managers have adjusted their expectations to account for smaller investment returns, and pressure is building on state and local governments to do the same. Read the whole story here.