Pension Funds and Pension Crisis

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Pension Funds and the Pension Crisis Introduction Pension funds are any plans, funds or schemes which provide retirement income. These funds are important to shareholders of listed and private companies and they are particularly important to the stock market which is dominated by large institutional investors. This essay discusses the idea of pension funds and the pension crises. It defines the issues of pension funds, talks about the various pensions, categorizes them, and discusses the pension crisis and its implications to the US in particular and to the world in general. Pension Funds Pension funds are any plans, funds or schemes which provide retirement income. The money in them varies from some offering very little making it not worthwhile for their holder to retires, whilst others pay more than the employee has earned in his lifetime. Examples of the former are the present-day crisis with Chicago teachers who have found that their pension is giving them as little as 42,000 per year ((NYT Times (September 19, 2012) Next School Crisis for Chicago: Pension Fund Is Running Dry). Examples with the latter are the absurd instances of Yonkers, where policemen in their 40s are retiring on $100,000 pensions (more than their top salaries), or in California, where payments to Calipers, the biggest state pension fund, soared while financing for higher education was cut (ibid). The largest 300 pension funds collectively hold about $6 trillion in assets (Global Investment
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