Quote:
Originally Posted by Slava
I think we (as a society/province/municipality, etc.) have a real issue with the DB pensions though. They're not affordable. With "us" covering that longevity risk for people and those people continuing to live longer it's extremely difficult. But again, I don't begrudge individual teachers for having that deal.
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They’re beyond ‘difficult’ - they’re untenable. Given the demographics of teachers (female, educated, healthy), a teacher starting today is expected to live to 90. The former head of the Ontario Teachers Pension Fund himself has commented that a system where members draw a pension for longer than they paid into is not viable in the long term. Especially in an aging society where the return on investment in the fund will be lower than the return in earlier high-growth decades.
The only question at this point is whether we’ll see painful but deliberate recalibrations of public pensions (some combination of paying more for longer / retiring later / receiving less), or if we’ll just ride this train to collapse and political crisis.