My fortune, fortunately
That old thing about asking several blind men to describe an elephant has a real life parallel. After googling the question about solvency of public service pensions, I learned that many people are upset (that they don’t happen to receive one, for the main part). You see, pensions, when they exist, can be separated into two main categories: defined benefits and defined contributions.
I fail to understand why the idea that someone else is going to receive a just return on a lifelong investment seems to irk a certain segment of the population. After all, “we” are forced to contribute, as part of our contract. If, at the end of the line, we actually receive a pension for the few years remaining, then GOOD.
However, those in the business world, who really want to eat their lunch AND yours, believe that governments don’t “play fair”. Since public sector pensions rarely default, there must be something crooked in the game. Dice with a weighted side. Let me point out that, unlike the business world, our pension fund tends to run properly. The accrued benefits don’t go into the pockets of the owners, in “behind the scenes” flimflam. In fact, if the business world would adopt a more social contract view of things, maybe their funds would do just as well.
I’m not sure where to take this. Either the idea of a pension is just and legal, or it shouldn’t be out there. I bite my tongue, because there are far too many entrepreneurs that would abolish their feeble attempts at a pension plan, tomorrow. Too bad if only the rich survive.
