[quote=bearishgurl]
harvey (aka pri_dk), if you think there are only TWO Piggs who grasp this concept, you need to put on your thinking cap. Let me clue you in, here. There are several more Piggs here who are currently working FT (for the gubment) under the premise that they will eventually be due a pension under a “defined benefit plan.”

I’m truly sorry for you that YOU DIDN’T CHOOSE to attempt to “qualify” for one of these eligible positions in line for a(n eventual) DB plan upon retirement. However, that decision was YOUR CHOICE! You COULD have elected to “jump thru the proper hoops” in attempt to get hired … alas but you didn’t! Thusly, you have NO RIGHT at this late date to condemn those persons who have served their qualified (faithful) service so as to earn their current pensions.[/quote]

It might be smart to have not worked under the promise of a DB plan. If it’s going to be cut in the future and based on the math of most of these plans it will probably have to be cut in some form, then you would have been better off not taking the promise of deferred compensation. The risk pool concept of a DB plan is good for most people. The problem is the benefit is not calculated as Total Amount put away plus a reasonable compounded interest rate (maybe 5%) and then distributed a rate rate similar to an annuity. It’s generally something much higher than that. That’s why there’s a problem. It’s the difference between the total amount put away plus investment returns versus the amount that was promised to be distributed.