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  • AFTER INVESTIGATION INTO SEATTLE’S PENSION SYSTEM, READERS WONDER: WHY NOT JUST INVEST IN INDEX FUNDS?

After investigation into Seattle’s pension system, readers wonder: Why not just invest in index funds?

MAY 17, 2018 | by Daniel Gilbert | THE SEATTLE TIMES

By Daniel Gilbert, includes “… Q: If city officials invested pension funds poorly, why do taxpayers have to make up for it? … Q: Why doesn’t SCERS just invest in low-cost index funds instead of employing active fund managers? … Q: How much does SCERS spend on investment fees? … Q: Are the city’s pension costs bigger than they appear? Researchers like Josh Rauh, a senior fellow at Stanford University’s Hoover Institution, have argued that public pensions effectively hide debt by assuming they’ll achieve a high investment return. …”

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