Actuaries Scrutinized on Pensions- NY Times Article

I was sharing this article with some of my co-workers this morning. You don't usually read much news about actuaries on newspaper.

According to the article,

In government, actuaries and the consulting firms that employ them are starting to draw lawsuits in places like Alaska, San Diego, Milwaukee County, Wis., and Evanston, Ill....The Fort Worth pension fund, in 1990, an actuary had calculated that the city could put less money into the pension fund and increase workers’ benefits simultaneously — without making a dent in the fund — if he assumed that the fund would earn 10.23 percent a year on its investments.This worked on paper but not in the real world. In reality, Fort Worth actually lost money on its pension investments that year. And the new benefits did, in fact, have a cost.