2 ms·
Normally pensions are funded by investing, not by setting aside cash for the retirement of people who haven't even been hired yet. Even worse, they have to borr
by wan23 5y ago
Normally pensions are funded by investing, not by setting aside cash for the retirement of people who haven't even been hired yet. Even worse, they have to borrow to meet this requirement to hold cash they won't need for years, so now they're paying interest instead of earning it.
- NovemberWhiskey 5y ago>Normally pensions are funded by investing, not by setting aside cash for the retirement of people who haven't even been hired yet If that's meant to be a description of the USPS situation then it's not at all accurate. The USPS is required to calculate its actuarial liability for its retirement fund by considering both current and future liabilities for the next 75 years (I think that's the part where I think you're getting 'setting aside cash for the retirement of people who haven't even been hired yet'). That is true. But it also deducts from that liability the expected future accruals (i.e. the contributions to the pension fund that those people who haven't been hired yet will make). I think you can probably agree that you need to do both of these things when considering the sustainability of a pension fund, no?