Chicago MEABF is one of the city pension funds. A 2017 stress test was done meabf.org/assets/media/5…
Not because it makes much sense for a pension fund whose promises extend decades.
But let's see the result from some of those scenarios
So you have to sell off assets to cover liabilities cash flows... and cannot earn out of a hole
If the liability growing, or even level, it's a horrible sign.
"- Given the negative cash flow profile of the Fund, there is a risk of severe impairment. Most significantly, a repeat of the 2008 financial crisis could reduce the assets to less than $1 billion over a five-year period. "