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PODCAST: Palo Alto's pension problem
This graph shows the 10-year Treasury yield (orange line) and the CalPERS discount rate (blue line) against time. CalPERS is assuming a continued rate of return of 7 to 8 percent, even though interest rates have been falling since the 1980s. See a larger version of this graph at Graphic by J. Bulow, Stanford GSB, courtesy of Eric Filseth.

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