In response to this "scary" Tweet:
JohnLockeNC 7:17am via HootSuite
John Hood ruins the day of anyone who thought N.C. had a fully funded state pension system. #ConsNC #ncga #ncpol ow.ly/cECOy
For the most part, John Hood is correct in this article. State pension funds across the country have been improperly estimating earnings based on pre-recession data, and there will be some stricter reporting coming soon. But there is no connection between this article and NC's Pension Fund, since not only has Janet Cowell been reporting conservative earnings estimates, the actual earnings have been huge:
This year, we are seeing the fulfillment of many of our essential goals. During the 2011 legislative session, the Department succeeded in getting legislation passed that allows additional investment flexibility in the pension portfolio for maximizing returns and minimizing risk. Despite the slow economic recovery, the pension fund returned over 18 percent for the 2010-2011 fiscal year.
For those who gloss over when percentage points are mentioned, that 18 percent represents just under $10 billion earned, in one of the worst economic years in history.
The last thing we need to do is mess around with what Janet and her people have accomplished here, but keep this in mind: that's a great deal of money, and the Republicans could help out quite a few of their friends by taking over this function. And as usual, the needs of the pensioners and taxpayers will have to take a back seat if that "golden opportunity" arises.