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There are many fixes. The employees at a company I used to work for funded their own pension, with company contributions up to some thousands a year per person.
by AmVess 8y ago
There are many fixes. The employees at a company I used to work for funded their own pension, with company contributions up to some thousands a year per person.
The plan was fully funded, too...meaning that it would never run out of money.
- caseysoftware 8y agoThe point is that many cities did not fund their pension funds to the levels required. Further, as cities employees (often unions) negotiated better payments and a lower retirement age - because, it's all later! - the gap got bigger and bigger.
- TheBeardKing 8y agoThe US government did that as well back in the 80s when it converted from CSRS to FERS. The unfunded obligation of the old system is something like $800 billion and won't be settled until 2090. The new system is a mix of SS, defined benefit, and defined contribution and is expected to stay solvent indefinitely. New federal employees hired after 2013 got screwed, however, as they upped their contribution rate to cover the massive problem CSRS caused.