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I see parallels between water rights "xxx acre feet per year" without regard for how much water is incoming, and pension funds where they simply declare how muc
by LanceH 2mo ago
I see parallels between water rights "xxx acre feet per year" without regard for how much water is incoming, and pension funds where they simply declare how much will be paid out.
I really can't tell the difference between people being uncaring or just stupid about either.
- p-e-w 2mo agoThe whole pension fund concept only works because it declares how much is going to be paid out. Who’s going to pay in if the fund expects a guaranteed commitment but refuses to give such in return?
- JumpCrisscross 2mo ago> Who’s going to pay in if the fund expects a guaranteed commitment but refuses to give such in return? Literally defined contribution [1]. [1] https://en.wikipedia.org/wiki/Defined_contribution_plan https://en.wikipedia.org/wiki/Defined_contribution_plan
- ericd 2mo ago401ks don’t guarantee results for a given amount of input, and people still stuff away lots into them?
- hiitsmyaccount 2mo ago[dead]
- hvb2 2mo agoThe tax code is also really powerful in sending money to certain products
- arjie 2mo agoIt’s called a defined contribution pension as opposed to a defined benefit pension. They exist.
- skeeter2020 2mo agonot only do they exist, they are by far the more common variant. Whenever you hear about a massive unfunded pension liability it's a defined benefit plan.