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Originally Posted by Skoidat69
More people think that Feds clean up but it's certain states that have un sustainable pension systems.. The crappy thing is that people of my grandparents generation setup these systems to benefit themselves but I believe then knew it was a bad system.. my wife's grandmom worked for the state of IL for 17 years but got a full pension for 35 years. IL's state system is F'd.. Mechanics are paid almost above private sector and get a pension on top plus stacking OT..
We need to change the pension models I.e Cash Balance Pension or transition to heavy funded pension that equal to present day pension contributions..I.e if total employer pension contributions are 8% and 401k match is 4%… say something like you out 6% and we'll give 12%.. Then you have cost savings as some idiots won't put in enough to meet match and you don't have to guarantee returns..
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Defined BENEFIT vs defined CONTRIBUTION. I can't even imagine how to do long term budget projections on employees costs. . .