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Old 01-24-2014, 11:50 AM   #41
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BTW, I am a huge supporter of DB pensions and sincerely hope that the public sector can hold strong in defending them.

-gauss
Why? I feel exactly the opposite - a DB is based on a future promise. Since no one has a crystal ball, who can predict if the promise can be kept?

And it leads to all sorts of manipulation. Politicians can make promises today that are supposed to be paid in the future (and those future payers have no vote at the present). It's a very bad system, IMO.

I'd reconsider if it was 110% (to provide some buffer) funded on a running 5 year average (or some other smoothing function), and investment returns were assumed to be nothing more than matching inflation, and the fund was managed by an employee representation so politicos could not play games with the funds. That's a lot of ifs/ands.

-ERD50
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Old 01-24-2014, 12:03 PM   #42
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[mod edit: quoted post has been deleted]

What's wrong with getting an accountant to run a present value of the pension versus the payout?

Annuities are another Matter. I know of only one real life situation where putting most of a one's retirement money in an annuity made sense. And it was mostly due to the temperament of the person, and not for financial reasons.
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Old 01-24-2014, 12:08 PM   #43
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What's wrong with getting an accountant to run a present value of the pension versus the payout?...........
Absolutely nothing wrong with that. Is that what this poster was suggesting on his first post?
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Old 01-24-2014, 12:26 PM   #44
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Last year one of the automobile manufacturers offered pension buyouts even to those who were already retired and drawing a pension.

There was a reason that it was only offered to office and management and not to hourly workers. In a word, longevity.
In a word - union contract ...

I retired from a company in which the UAW represented the "workers" (I was non-management, white collar).

Unless it is good for the folks representing the UAW, it's not going to go anywhere.

FWIW...
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Old 01-24-2014, 12:45 PM   #45
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Absolutely nothing wrong with that. Is that what this poster was suggesting on his first post?
He seemed to want some advice. My advice is to get a present value done using various rates of return over the next 30 years and see how things compare.
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