I write this letter in response to Mr. Curtis Hutchins’ rebuttal last week in the Albert Lea Tribune to my column the week before. I have no special reason or ax to grind about the Minnesota public pension system. All the information in my article was based on an actuarial report to the Minnesota Legislature.

Wouldn’t we all like a guaranteed return of 8.5 percent on our investments for retirement? When you use an 8.5 percent assumption, you are assuming that your investment will earn that much. If they don’t, you have to put more money into the plan to fulfill your obligation to your employees. All payments, whether they are employer or employee made, have to be paid by the taxpayer.

At 78 years of age, I am not concerned about myself, but I am concerned about the obligation that will have to be made by my children and grandchildren to fulfill a promise to public employees based on a grandiose assumption of 8.5 percent.

 

Alan Arends

Albert Lea