The Challenges Pensions Face: Cash Flow Matters

Pension Challenges - Guest post: Greg Mallison -- Doylestown Wealth Mgt.

And so from hour to hour we ripe and ripe
And then from hour to hour we rot and rot;
And thereby hangs a tale.
As You Like It, II, 7, 26

Most articles which bemoan the state of public pension plans in the United States focus on the gap between the funds’ net asset values (NAV) and their projected benefit obligations. Make no mistake, these plans are about 20% underfunded when you consider them in the aggregate, and some states and cities are far below the levels needed to meet their promises. However, the most insidious rot at the heart of the US public-pension...