From the executive director of Chicago’s MEABF: “If markets are flat or negative in upcoming years, we will continue to lose principal at a double digit rate….The projected insolvency for the fund will escalate.”

Comment: Let’s get real. This fund, like most large ones in Illinois, will continue to “lose principal” (that is, the unfunded liability will increase) even if return targets are met. We’ve documented that inside and out. Negative amortization is built in.