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U.S. state and local government pensions, already with about $2 trillion less than they need to cover all the benefits that have been promised, are falling short of their investment-return assumptions this fiscal year — and President Donald Trump's trade war with China isn't helping.
The median public fund, which typically has a fiscal year ending June 30, returned 3.25% for the three quarters through March 31, according to Wilshire Associates Trust Universe Comparison Service. The average assumed rate of return for public funds is 7.3%, according to a survey by the National Association of Retirement Administrators. Pensions rely on those returns to determine how much governments and their employees need to pay into the funds each year.
