Friday, May 18, 2012

Government pensions - a blast from the past

Here's the public pension problem in a nutshell:

Government pension convention starts with a combative tone | Raising Hale: "“The traditional pension – also known as the defined benefit retirement plan . . . “In the private sector, the percentage of workers participating in a traditional plan has plummeted from about 88 percent in 1975 to 24 percent in 2008,” Liu said. “More than 90 percent of public sector workers still have a traditional retirement plan". . . "

Government just isn't nimble and change is anathema to public employees who want to continue living in the past and increasing their "take" of GDP and public resources. The fix? We need to replace pensions (public and private) with self-funded retirement accounts, and have everyone included in Social Security.


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