The rates of return that would be needed to cover all the promises are unachievable. This was easy to see coming. If folks were honest with themselves.
All the finance professors and pension advisors were touting returns on common stock. A diversified portfolio increased on average 10% a year since the 1930’s. However, past performance is no guarantee of future performance.
And of course bank CDs and government bonds are paying what 1 or 2%. Pension managers need to reevaluate their assumptions about rates of return.