Quote:
Originally Posted by The Yen Man
Well, something's not working if they're saying the pension fund isn't sustainable at it's current rate. So you either get people to contribute more to the fund while they are working, or pull out less when they are not.
I guess in my simplistic view, the fact that your retirement years can outpace your working years while still being paid a working wage salary during the pension years inherently tells me it isn't sustainable, unless the pension fund has made some crazy good investments over the years that has somehow offset the fact that people are drawing more out of the fund than putting in. (sorry for the crazy long run on sentence)
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It's this. There are three levers you can use to rectify these situations. You can have more money contributed, which is either by the city or the employee in this case. You could have people work longer (which really has them contribute more money and draw the pension from that fund for a shorter period of time). Or you can get a better return. The third option there is not something that you can plan to "just do". So you're looking at one of the first two. That's it.