What is “common” profit on the projects pension funds invest their money?
That isn’t the way pension funds are run… Most of them are run to earn a risk adjusted rates of return that at least matches the market return and, preferably, minimizes future cash contributions by the sponsoring organization (company, union, state government, etc) If they are “smart” they are probably aiming for a risk adjusted real rate of return in the 7% neighborhood. That isn’t “an interest rate,” mind you. “Goals” can range from the low to mid teens. They tend to fluctuate a lot over time…high in up markets, lower in down markets. There is some evidence that the average pension fund under-performs the market to the same degree that the average mutual fund does (over 10 year and greater periods).
