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Subject:  Re: Proposal to end public pensions Date:  7/10/2013  8:50 PM
Author:  GrowthnValue Number:  428419 of 536569

Public defined benefit plans would be fine if employees properly valued them and governments properly funded them. But, neither do. Governments don't properly fund them and I don't think employees value them as much as they cost (maybe they are discounting them based on uncertainty). Regardless, it is hugely expensive to send monthly checks to people who aren't working from the age 55 or 58 or X for the rest of their lives.

It is very simple, politicians can promise workers certain benefits, not fund them, and let later politicians and often different taxpayers deal with the consequences.

We would be much better off if defined benefits plans were stopped and pay increased/401(k) started. Let the market decide the appropriate pay. I think there would still be plenty of applicants for government jobs.
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