Bad Math and a Coming Public Pension Crisis

2015-07-09T21:41:43-07:00July 9th, 2015|Categories: Defined Benefit Plans|Tags: , |

When Jim Palermo was serving as a trustee of the village of La Grange, Ill., he noticed something peculiar about the local police officers and firefighters. They were not going to live as long as might be expected, at least according to pension tables. After Mr. Palermo dug into the numbers, he found that the actuary — the person who advises pension plan trustees about how much money to set aside — was using a mortality table from 1971 [...]