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I saw this response to a simular comment made by a NY union boss regarding a stock market uptick.

"When Comptroller Thomas DiNapoli announced last month that New York’s state and local pension fund had earned 14.6 percent on its investments in fiscal 2010-11, the AFL-CIO’s Dennis Hughes said the the comptroller’s numbers had “call[ed] into question the need for so-called ‘pension reform’.”

This response was from a renown pension expert:

"Sure, we can expect (and hope) the markets rebound at some point. But Dennis Hughes fails to take into account two critical fundamentals. One is the idea of geometric growth. Let’s say I sit down to play poker with $1000 in chips. On the first hand, I lose 50% of them. On the second hand, I win 60% of my remaining chips back. Big hand! Only at the start of my second hand, I only had $500 in chips left. What’s 60% of 500? So I won $300 back and have $800 in chips in front of me. I’m still down, in other words. So even when the S&P bounces back, the New York State Pension Fund will still be underfunded due to outsize hits it took in recent bad years.

Same principals apply to Warwick's pension plans.

From: City’s ‘critical’ pension plan to get outside review

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