Quote:
Originally Posted by tucker6
That's why most businesses no longer have pensions. The govt at all levels needs to take a page from private business and get out of guaranteed pensions. Just provide deferred compensation plans (similar to 401k) and add an employer benefit to it. If private company employees can only get 401k's, why can't public employees live the same? These pensions are costing we the people a small fortune to fund.
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This has nothing to do with pensions. It has to do with how they are funded. They have to be funded up front.
In laymans if I am a pensioner bringing in $35k from the USPS they are required to maintain $2,625,000 in that fund for me at all times. No other business on the planet operates on that model but Congress required it for them.
Perhaps it's just their health fund... maybe both. Can't remember but point is they CAN'T offer those things they have to use this ridiculous model required by congress.
