Quote:
Originally Posted by Slava
It's not necessarily less contributions though. It's that the benefit is not guaranteed. So the city could effectively say "we're not cutting the contributions or reducing that in any way. It's just that you get the results of that, and not a guaranteed income for the rest of your life."
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Exactly. Right now Calgary taxpayers have a huge bet that medical science won't extend people's lives. I'm not sure that's a bet I want to make.
Keep the generous pension contributions, but switch to a DC plan. Each employee gets the contributions and growth related to their own account. Want to retire at 55 with what's there, great. Still engaged and productive, keep working and piling up more money on your personal fund.
One of the problems with a DB is that it gives a huge incentive for people to retire young, when that may not be the best thing for them or society. It's not like 55 is way over the hill now, especially for a knowledge worker.