MORE ON THOSE UNDERFUNDED / OVERGENEROUS PUBLIC PENSIONS: Report: SF Pension Crisis Much Worse than City Claims: Adachi-commissioned analysis puts gap at $6.8 billion–not official figure of $1.6 billion. “The city’s pension fund is officially underfunded by $1.6 billion. Nation’s study argues that the pension fund is relying on a 7.75 percent annual rate of return that is unrealistic over the long term. The study argues for 6.2 percent, which it says was the average rate of return in the capital markets from 1900 through 1999.” Frankly, that “conservative” number looks overoptimistic to me. 4% is probably more realistic.