Dear Source,
In response to open forum by Eric Dawson, "GERS Fiscal Health Declining," I have yet to see a 'break even rate of return' published for the GERS. This is the interest rate needed for long term stability given current and projected payments. The higher the 'break even rate of return' the worse the condition of the fund. Right now anything below 5 percent would indicate solvency, and anything above 9 percent would indicate inadequate funding. Rates in between would be subject to debate.
Sincerely,
Warren Mosler
St. Croix
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