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What are America’s Pensioners Getting from Private Equity?

Imagine a schoolteacher in a mid-sized American city. She earns approximately $60,000 per year and each month contributes somewhere between 6 and 12 percent of her wages to the state’s public employee pension plan. Given her salary and associated living expenses, a robust personal savings plan seems out of the question. For the teacher – and the firefighter, the police officer, and many other public employees – pension benefits are the only hope for financial security in retirement.

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