Quote:
Originally Posted by opendoor
I mean, there's actually no reduction in your hypothetical example, because if you retire at 65 you get an unreduced pension regardless of how long you've worked or how many points you have. But obviously if you only have a few years of service, the pension amount will be miniscule (unreduced or not).
But how does that penalize younger people? Obviously they're going to reduce your pension if you want to retire at 45 or 50 as opposed to retiring at 65 with the same service. The former person would be collecting it for twice as long on average as the latter.
|
Under that points system, someone retiring at 55 with 20 years of service and someone retiring at 55 with 2 years of service get the same reduction to their pension of 30%. Obviously the 2 year guy will have a lower base pension, but I can see why the 20 year guy might think that was unfair.