4 ms·

Or pre-fund the pensions at the time the employee is working. I believe there are laws now requiring this, which is getting the US postal service upset because

Or pre-fund the pensions at the time the employee is working. I believe there are laws now requiring this, which is getting the US postal service upset because they suddenly have to pay a lot into pension funds now instead of later.

scarface74 9y ago
They do prefund pensions - they just prefund them using an unrealistic rate of return. Their Is nothing wrong with funding present level of liability based on the expected future value as long as it's not based on an unrealistic rate of return.
toomuchtodo 9y ago
The US postal service pension funding requirement was made purposely onerous by Congress, and is far more conservative than necessary (by design). I would recommend against using it as an example of proper pension governance. https://www.uspsoig.gov/blog/be-careful-what-you-assume https://www.uspsoig.gov/blog/be-careful-what-you-assume https://www.govexec.com/pay-benefits/2016/12/obama-administration-makes-long-desired-change-postal-service-pensions/134166/ https://www.govexec.com/pay-benefits/2016/12/obama-administr...