Pension Funds Pour Billions Into Alternative Assets

The video explores the evolution of pension systems from the Roman Empire to modern-day America. It highlights the introduction of pensions in the 19th century in the US, with Massachusetts being the first state to offer a pension plan for state employees. The federal government followed with the Civil Service Retirement Act. By the mid-20th century, public pensions became common. Today, the largest public pension in the US is CalPERS, which faced significant losses in 2022 due to inflation and high interest rates. To counteract these challenges, US pensions are increasingly investing in alternative assets like private equity and real estate.

What was the reward for Roman soldiers after 25 years of service?

• A lifetime supply of food

• A lump sum worth about 13 times an annual salary

• A position in the government

• A house in the city

Which city was among the first to offer payments to injured police officers and firefighters in the 19th century?

• Boston

• Los Angeles

• Chicago

• New York

Which state was the first to offer a pension plan for general state employees in 1911?

• Texas

• California

• Massachusetts

• New York

What is the largest public pension system in the US today?

• Texas Teachers Retirement System

• New York State Common Retirement Fund

• Florida Retirement System

• California Public Employees' Retirement System (CalPERS)

In response to financial challenges in 2022, what type of assets are US pensions increasingly investing in?

• Cryptocurrencies

• Alternative assets like private equity and real estate

• Gold and silver

• Government bonds