<<If you pay in for 40 years and have the bad "luck" to die before collecting, you get nothing. A 40 year compounded ROI of 0%. Where in the private sector can a company collect premiums for 40 years and then refuse to pay out to you or your heirs? >>

Not quite right. Young wifes, widows and surviving children under age 18 all are potential beneficiaries of this person. If this 60 yr old who worked for 40 years has a 50 year old wife with a 10 year old son, benefits would be paid for 8 years to the child and possibly 30-40 years to the widow. Much better than private sector I'd guess........

Only in a never married, no minor children situation is nothing paid out.