Pension plans remained severely underfunded during the 11-year bull market that followed the Great Recession. The plunge toward insolvency and high-return markets led fund managers to take on risky bets in hope of staying afloat. Now, the recent selloff has left funds struggling to keep up with their future obligations. The 100 largest public pension funds in the United States had been funded at just 78.6% of their total obligations at the close of the second quarter, down from 85.5% at the e...

Pension plans remained severely underfunded during the 11-year bull market that followed the Great Recession. The plunge toward insolvency and high-return markets led fund managers to take on risky bets in hope of staying afloat. Now, the recent selloff has left funds struggling to keep up with their future obligations. The 100 largest public pension funds in the United States had been funded at just 78.6% of their total obligations at the close of the second quarter, down from 85.5% at the e...

Some funds, like the Houston Firefighters Relief and Retirement Fund began investing in cryptocurrency, according to a Reuters report. A lack of transparency makes it difficult to assess just how much money funds lost in the crypto crash this spring. Funds don't report second quarter returns until later in the summer. As interest rates increase and market stability decreases, those pensions could face more trouble.

Some funds, like the Houston Firefighters Relief and Retirement Fund began investing in cryptocurrency, according to a Reuters report. A lack of transparency makes it difficult to assess just how much money funds lost in the crypto crash this spring. Funds don't report second quarter returns until later in the summer. As interest rates increase and market stability decreases, those pensions could face more trouble.

The Teacher Retirement System of Texas, the country's fifth-largest public pension fund, has also used leverage funds since 2019. * Leveraging can help multiply market gains in bull markets, but it can also increase losses during the bear times. While the majority of pensions still don't use borrowed funds, there has been a sharp increase over the last four years. Before 2018, none of the largest funds used leverage. The California Public Employees' Retirement System building i...

The Teacher Retirement System of Texas, the country's fifth-largest public pension fund, has also used leverage funds since 2019. * Leveraging can help multiply market gains in bull markets, but it can also increase losses during the bear times. While the majority of pensions still don't use borrowed funds, there has been a sharp increase over the last four years. Before 2018, none of the largest funds used leverage. The California Public Employees' Retirement System building i...