Originally Posted by gauss
BTW, I am a huge supporter of DB pensions and sincerely hope that the public sector can hold strong in defending them.
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.