Quote:
Originally Posted by GP_Matt
At some point then, when those who didn't contribute fully stop collecting will the rate go down? Or better yet, we keep the rate the same and jack up the benefits to screw the next generation.
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At the current forecast it'll take until 2020 to make up 20% of the existing underfunded liability, this improvement is from changes implemented in 1998. At the time of the agreement it was 7% funded. The rate maxed out in 2003.
At 17 years to catch up 13% of the deficit, it would take ~104 years to get to fully funded, assuming steady state, but the boomers are only just starting to retire in numbers, so it'll actually never happen.
Basically, right now there's no plan to ever get to fully funded, but the contribution rate shouldn't have to go up much if at all to keep paying out the benefits promised, since the deficit is made up every year by people contributing more than the benefits they're earning are worth.