When Pension Fund Managers Can't Do Arithmetic

July 21, 2012

There are good paying jobs for unskilled people managing pension funds. Floyd Norris reports on how these folks, who get 6-figure salaries, expected to get 8 percent returns even when the price to trend earnings ratio in the stock market exceeded 20 and even 30.

People who know arithmetic could have explained to these managers that this would not be possible. Today many of these pensions are seriously underfunded.

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