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Monday, April 20, 2009

Corruption in public pensions

Public pension funds differ from private pension funds because their shortfall can be covered by taxing the public. That’s also the reason why they often turn into political piggy banks.

Take the NY State’s public pension funds which enriched money managers and “fixers” millions of dollars.

The fact is that pension fund managers are paid millions of dollars in fees and these managers are often chosen not for their expertise but for who they pay off.

Performance of pension managers is often worse than your typical retail mutual fund.

In The Public Pension Shakedown the "play for pay" scandal is exposed for all to see. And the one who gets stuck with the bill is the long-suffering taxpayer who has to make up the losses created by the crooks who run this money.

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