Ultimately taxpayers want a defined contribution. I want to know what the true costs for each service are and pay for them now. If the fire fighters union or police union want to take this defined contribution, pool it and set it up as a defined benefit plan that’s fine. When actuary projections don’t pan out the members of the plan either have to contribute more out of their pay check or redefine the benefit. I just want the risk moved from the taxpayer to beneficiaries. If they chose to use a 401K that’s fine too, if they just hand people the money and say you get no retirement that’s fine also. Let the people/unions decide whats the best way for them to provide retirement.
The bottom line in my eyes is that comfortable retirement of the masses is a relatively new concept that is going to fail. It’s just not possible from a logical prospective. Producers of goods and services are going to provide for themselves and their family first. The remaining goods and services produced are available for retirees to compete for. The only way to give retirees more goods and services is to take more goods and services away from the producers. Want a 40K pension for all, triple the social security taxes (i.e. take a lot more from the producers)
