Jim, Hey, my Mother has pensions from California AND Texas. Arghhh!
The pension goofs already pulled a huge scam more than a decade ago with the 401K concept. What looked too good to be true was. Now we see company contributions fall by the wayside and the investment selections almost all suck. We had a guy give us a talk who said that everyone would be wise to follow the lead of pension fund managers. I nearly laughed rudely. Among professional portfolio managers, it has always been known that the least capable manage pension funds. The ranking is usually Hedge funds, Mutual funds, Insurance companies, banks and, finally, pension funds. That doesn't mean there are not great managers in each category. Just that on average, the pension crews are slow joes.
So, when the govt., in its wisdom, developed ERISA, they modelled the rules after the worst investors. It makes perfect logic to me. |
