Quote:
Originally Posted by The Fisher Account
Isn’t Slava supposed to be like a finance guy?
Does he even know how a DB pension works?
Does he understand that pension plans actually invest the money people contribute and grow their funds with that money?
That pensions are actually deferred wages?
That those working are actually the primary ones contributing to retirees incomes, not the government?
Good grief.
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Thanks tips. I’m well aware of how pensions operate and could give you a full rundown on DB plans and how they operate. Don’t worry about my qualifications though. This isn’t me on an island saying that DB pensions are declining, there are plenty of expert opinions and real world examples out there.
It’s not hard to figure out though. People used to retire at 65, have some good times and die closer to 70-75. We can’t plan that way now though. People want to retire earlier, and live longer. Which means the pension has to fund that retirement for a longer period of time. And yeah, of course it’s invested…but the returns have a lot of ground to make up when people retire earlier and live longer.
As for your “does he know series”, the thing is it’s not only deferred wages and salary. Plenty of these entities are adding funding and of course when returns aren’t keeping up, people are living longer and such, these entities are on the hook for that. And yeah, the employee makes a contribution to their pension, but the entity also makes contributions and those entities bear all the risk.
Like I say…you don’t have to take my word for it, as there are plenty of examples. Everything from municipalities to major corporations have had enormous issues with DB plans. This isn’t something I’ve dreamt up on my own and am hoping some anonymous accounts on CP are going to agree.
And don’t even get me started on iggy with his usual “we’ll just raise taxes” solution.