> The only solution is to ban defined benefit pensions (and all deferred compensation schemes) so there no longer exists one less avenue for future taxpayers to get taken for a ride.
Then you'll have to raise wages for government jobs dramatically. The decent pension is one of the perks that attracts people to those careers.
I think the main problem is that governments never want to pay into the pension pot during boomtimes, and then they cry poverty when the economy is in a downturn. In principle, an "immortal" entity like a state pension fund should be much better positioned to manage risk over time than a single individual with only one lifetime and one 401(k).
> Then you'll have to raise wages for government jobs dramatically.
I don’t see the problem with paying market wages to people to avoid screwing future taxpayers.
And there is no such thing as an immortal entity. My kids and I will be paying for benefits enjoyed by my parents and grandparents. (I know there are things my ancestors have done that I have and will benefit from, but I’m strictly speaking in context of payment/benefits for defined benefit pensions).
Then you'll have to raise wages for government jobs dramatically. The decent pension is one of the perks that attracts people to those careers.
I think the main problem is that governments never want to pay into the pension pot during boomtimes, and then they cry poverty when the economy is in a downturn. In principle, an "immortal" entity like a state pension fund should be much better positioned to manage risk over time than a single individual with only one lifetime and one 401(k).