3 ms·

Paying people 50% of their wages in ballooning retirement benefits is not the best way to get the best and brightest.

• jackcosgrove 4y ago
  Given we have stagnant or declining populations any defined benefit pension plan will fall short of the promises in the coming decades. Not only is deferred compensation unappealing to many people because of present time orientation, it's a riskier pension than a defined contribution plan. You also lose out on the ability to negotiate better compensation by changing jobs. On the whole the lifetime employment model was abandoned by the private sector decades ago for many good reasons, namely the impossibility of funding defined benefits after population growth stalled; as usual the government is the last place in society that makes necessary changes.
  • rdtwo 4y ago
    It’s a bad model I ageee but the defined benefits Usally get pegged at last couple years salary so you just have to hope you don’t retire into inflation like we have now
    • malandrew 4y ago
      On the other hand, defining the benefits based on the last few years, leads to employees taking every overtime opportunity for the last few years to inflate their retirement benefits. Overtime absolutely should be excluded for the calculus so people can’t game the system.