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South Carolina state treasurer Curtis Loftis weighs in on pension liabilities.
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That's right in this taking got -- is much bigger than anyone banks unfunded pension liabilities.
Are very on Charlie Gasparino is reporting that the number is roughly four trillion dollars across this country this according to a report.
From JPMorgan.
That Charlie uncovered.
Current -- this knows all about it he is the state treasurer of South Carolina he joins us now from Columbia, South Carolina Chris thank you so much for being here.
Hey this is a problem that you're very state has been grappling with an excessive risk taking.
To make up that shortfall do you believe.
In your heart of hearts this problem nationwide is fixable.
That that's for.
It is fixable but it is a nation my problems it is finishing time from -- -- -- -- -- for about fifteen months so I'm getting you know.
Page you go Ph.D.
in all of this in what I find is these -- a public pension plans across the country are opaque to keynesian tools.
You think you know what goes on but just like the was -- yet -- that curtain back.
And what you find is troubling and so we have all a lot of -- systemic problems are structural nature of the had to do with our infrastructure.
How pension plans across the country -- their money.
Fees contract management all these things and they affect the bottom line I think -- overlooked robbers and the underperformance.
What specific and it's what I what you noted it was something and note JPMorgan report.
The talk about the real liabilities are off balance sheet -- hidden from the public's -- The -- we have had some critical votes and to cut benefits.
On in San Diego and in San -- what specifically are you doing to fix the trouble.
In -- -- Well what most states -- it's simple it's a simple math problems we've got -- up our income and lower expenses and on income you know we gonna have freeways income.
It's the taxpayer is employer.
It's the public service employee as they've made their contributions and of course investment income.
And we didn't.
Playing a funny game by having on route on realistic greater returns -- -- they're saying that 88 and a half percent or realistic and they're not.
Not anywhere near that especially -- it's.
-- the benefits of future employees need to be cut or would you wait are you advocating them into a 401K plan system for.
-- hires in the future which is the way that the San Diego -- wanna.
Well I mush sold that vessel right way -- now like that IDF is you know philosophically for the on the conservative.
But there's an expense of that you know you need the new employees to keep feeding the old system.
That there's just a lack of will power here across the country yeah -- somewhere in in this way politicians.
Any politician just won't bite the bullet and you we've got a stand up.
I call a little flack for talking about the investment size because of investment commissions don't know what we made across the country it's almost impossible from one that reconciles its fees and expenses back to source documents.
We can take fifty or sixty million dollars a year in fees and expenses and I have a slightest idea what they're for they don't seem to have written bill.
And to all of those things affect our bottom line.
Until we make these pension system is more transparent no one can be -- look inside in the illiquid assets that are all books the expenses.
These.
Will never gonna find them.
-- -- thank you so much -- walked just the state treasurer from South Carolina take.
