Government pensions need to come to an end. The math just shows they are unsustainable. Why not have government employees invest their earnings in a 401k or other conventional retirement funding vehicles instead?
....Wanna bet the DC solution is to reach out and grab (nationalize) the existing privately controlled 401Ks to subsidize the Federal government’s train wreck?
Their pensions should be cancelled outright. In the name of fairness, they should be given something equivalent to, say, 10% of the salaries that they made over the life of their government employment - plus, say, 3% of that, which is what your average corporate employer gives - and then let them invest in the same choices as the average 401(k) program: money market, treasuries, index fund, other managed funds, etc. After that, it’s all on them, and we the taxpayers have no further obligation to them. Maybe they’d be more careful about their ridiculous meddling in the economy if they had to suffer like the rest of us.
You are absolutely correct. The government workers should have a 401K with 3% match. PERIOD. You get out of it what you put into it.
I have not read the posts on this thread but in case someone has not pointed it out, the U.S. Government retirement program changed in the mid-80s and the guaranteed pension ended. Now, federal government employees' retirement IS based on earnings in a 401k type program (plus Social Security).