Joshua Rauh, assistant professor in the Kellogg School of Management at Northwestern University, has been making news lately regarding his recent paper that projects insolvency dates of public pension funds. Unfortunately, this report is extremely misleading.
· The report substitutes academic theory for actual long-term market experience, drawing conclusions that are unfounded and alarmist.
· This type of academic analysis is not a true reflection of public pension solvency or actuarial soundness.
· It is not a realistic or accurate measure for public pensions.
Read the full report here.