>I do not see why costs arising from agency risk, as seen pervading the US on state and county and city levels, should be disregarded. Fair point, but individu

>I do not see why costs arising from agency risk, as seen pervading the US on state and county and city levels, should be disregarded. Fair point, but individual accounts have similar issues. People give their money to wealth advisors or whatever all day long. >It is not cheaper for younger taxpayers and younger government employees shunted into lower paying tiers of the pension. I have a sister in law who is 7 years older than my other sister in law. Both work for a state government, and the older one has worked a lower paying job her whole life than the younger, by at least $20k per year. However, the older one will retire with a benefit worth at least 2x as much as the younger one. I'm arguing that benefit-for-benefit, the pension does it cheaper. It would be cheaper for a pension to provide your older sister's benefit and cheaper for a pension to provide your younger sister's benefit. But yeah, this kind of thing is fucked up and I don't know why unions agree to it.