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It is related to the budget, but not directly related since it is promises to fund pensions rather than something directly related to government services. It c
by nikdaheratik 10y ago
It is related to the budget, but not directly related since it is promises to fund pensions rather than something directly related to government services.
It could be funded by increasing contributions gradually until it reaches the correct funding level (either from cuts in other areas or taxes), by cutting the future amounts they distribute from the pensions, by raising the retirement rate of current workers which would give them time to make up the deficit, or a combination of these.
The problem is, these options all kind of stink politically, but they won't bankrupt the state by themselves.