Quote:
Originally Posted by opendoor
Yeah, it's baffling that people don't seem to think that there are actuaries whose entire job is to ensure that these pensions remain solvent and properly funded given the expected lifespan of the members. The ratio of teachers currently working to the # that are retired is basically meaningless when over 1/4 of their gross salary is going into pension contributions. 30 years of that level of contributions can easily fund the retirement benefits they'll receive.
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I don't get this line of thought. Of course there are actuaries. But, there were actuaries in cities like Detroit where they had enormous issues surrounding their pensions. It's not just super simple to make sure that these things are properly funded, but that isn't even the main concern. It's that you calculate what is required for proper funding and it's a pile of money...as evidenced in your next sentences!
Quick question on that teachers pension though. That 25% that is contributed...are the employees themselves putting in 25% or is that made up of their contributions and the match from their employers?