How can pen­sion fund lag amid mar­ket surge?

Austin American-Statesman - - VIEWPOINTS -

Re: Aug. 23 ar­ti­cle, “Pos­si­ble change to state pen­sion wor­ries re­tirees.”

In re­sponse to the Texas Tri­bune ar­ti­cle pub­lished in the Statesman re­gard­ing the fi­nan­cial prob­lems in the State Em­ploy­ees Pen­sion Fund, I am at a loss to un­der­stand why the fund is not mak­ing money big time.

Since 2009, the stock mar­ket has been on the big­gest run in his­tory. Bil­lions of dol­lars in profit are be­ing made by in­vestors. Even mu­tual funds are show­ing re­turns in the 18 to 20 per­cent range. The growth in the stock mar­ket over the past 7 years has been in dou­ble dig­its.

It seems to me that rea­son­able in­vest­ments would have re­turned a rate far greater than 7.5 per­cent to the fund. SAM MCGLAMERY, AUSTIN

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