San Francisco Public Pension System Much Worse Than Admitted

Via Instapundit. Once again, math is hard. Lying is easy.

San Francisco's public-employee pension fund is in weaker shape than many people realize, according to an analysis by Stanford University Professor Joe Nation released Tuesday. It is underfunded by some $6.8 billion, Nation's report finds.

The city's pension fund is officially underfunded by $1.6 billion. Nation's study argues that the pension fund is relying on a 7.75 percent annual rate of return that is unrealistic over the long term. The study argues for 6.2 percent, which it says was the average rate of return in the capital markets from 1900 through 1999.