2 ms·
> The moral hazard of letting today’s voters and today’s politicians and today’s senior government employees (the union leaders) steal from taxpayers 30 years i
by bsder 3y ago
> The moral hazard of letting today’s voters and today’s politicians and today’s senior government employees (the union leaders) steal from taxpayers 30 years in the future is obvious.
You don't seem to want to state the other obvious solution--all defined benefits plans should have to be funded as the person is paying in.
The problem with defined benefits plans is that they are allowed to be funded when the person retires rather than as the person is working.
That simple change takes the problem out of defined benefits plans.
- lotsofpulp 3y agoThat "simple" change involves a ton of agency risk, which we already have. Who is going to force the politician to make the payment? Who is going to force the pension plan board of trustees to use appropriate assumptions in their calculation of liabilities and the requisite funding? Who is going to watch out to make sure the board members are not investing in their brother in law's cousins' real estate project?