I’ve already addressed why they want to “lock in” those employees by having DB plans instead of DC plans in my previous post:
“They compete with private sector companies for employees so they have to offer something that will attract and keep the best employees. In the public sector, the value of training and experience on the job often trumps other variables, so keeping a lid on recruiting and training costs (which are VERY high) is extremely important to public agencies as well.“
As for Social Security having benefits that are comparable to public pensions, we would have to change the terms of the program. As of now, it’s an insurance program, and it’s meant to simply supplement other retirement plans. Yes, we would have to increase contributions (FWIW, public employees contribute about 50% more to their pension plans than private employees do to SS), and I would argue that we need to lift the cap on income levels subject to SS taxes, even if we don’t increase benefits above that (yes, that dreaded “socialism” again). It’s an easy fix, but not necessarily politically palatable, as with most problems in this country.
Still, while everyone cries that they don’t have DB benefits plans (because that’s what they’ve been told to believe by the Privatization Movement and those in the financial industry who want to get their hands on all of the SS and DB plan funds), they really do.
