While the Wall Street Journal reports a panel of actuaries recommends a reduction in investment return assumptions to 6.4%, Treasurer Cowell clings to her fanciful claim she can earn 7.25% when she only earned 2.3% last year. Her rosy scenario means billions in future pension fund debt for taxpayers and retirees to clean up.
The conservatives in the legislature passed reforms to address the problem like ending lifetime health benefits for newly hired state employees. Just that one reform will help keep pensions from going bust.
Will the rest support these reforms or put their heads in the sand like Janet Cowell?