Quote:
Originally Posted by iggy_oi
I’m sure it’s easy for you to say there’s nothing wrong with it when you’re not the one having to retire on it. There’s little to no guarantees with a DC plan.
Outsourcing or switching to a DC plan will increase the burden by leaving the plan with less employees paying into it, increasing the likelihood of insolvency.
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Of course the DB is a better deal for the employee, and no one debates that. But there's a harsh reality that people will need to face sooner or later; "we" can't fund people for 75 years of living with them working for say 35-40 years. If we want people to start working at say 20 years of age, retire at 55-60 and live until their 95, something has to change. The answer isn't always "just pay people", because it's not sustainable.
Regardless though, the "living wage" doesn't have to mean a DB pension. And for a municipality or many other entities that's just going to cause a lot of problems down the road.