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Turmoil Sends Mass. Pension Fund Plummeting

The turmoil on Wall Street is translating into dramatic losses for the state pension fund.

The fund, which covers the retirement costs of state employees in Massachusetts, plummeted nearly $4 billion in September.

That's on top of the $4 billion the fund lost during the first eight months of the year. Since January, the fund has tumbled more than 15 percent, from $53.7 billion to $45.7 billion.

State Treasurer Timothy Cahill said the losses could have been worse, given the economic crisis gripping the country. He predicted the state would be able to recoup the losses over time.

Despite the losses, the fund actually outpaced the market, which has fallen 19 percent through September.

The fund now stands at the same level it did at the end of 2006.

This program aired on October 8, 2008. The audio for this program is not available.

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