[quote=CA renter]…“Although pension funds have gained back some of the deep losses suffered during the recession, the plans remain underfunded by billions of dollars, and projections show costs to governments increasing in the future as more baby boomers retire.”
This claim also needs to be addressed. The largest pension funds are obligated to pay out benefits according to contracts, but most of their funding is NOT from “taxpayers.” Employees pay a portion, employers pay a portion, but the majority comes from investment returns. If the investment returns end up being insufficient, they can always extract more from the employees.
The notion that “taxpayers” are the ones paying for everything is pure B.S. It has not been that way, and I highly doubt it will ever be that way. People need to understand how the system works before they spout off about it.[/quote]
Amen, CAR. Some of this “underfunding” problem was caused from mismanagement of pension funds. In the County of SD, a former pension fund mgr who made investment decisions in favor of risky futures contracts and derivatives was summarily sh!tcanned and replaced.
