Defined benefit pensions have a simple fix. They should be illegal (along with all other deferred compensation schemes) for taxpayer funded entities.
The moral hazard of letting today’s voters and today’s politicians and today’s senior government employees (the union leaders) steal from taxpayers 30 years in the future is obvious.
Not to mention it is all going into the same SP500 anyway, so just cut out the middleman and moral hazard, and give everyone a Fidelity/Vanguard/Schwab 401k and let them buy the SP500/target date retirement fund they want.
Having a lien on future taxpayers is literally the only difference between taxpayer funded defined benefit pension funds and 401K/IRA.
The moral hazard of letting today’s voters and today’s politicians and today’s senior government employees (the union leaders) steal from taxpayers 30 years in the future is obvious.
Not to mention it is all going into the same SP500 anyway, so just cut out the middleman and moral hazard, and give everyone a Fidelity/Vanguard/Schwab 401k and let them buy the SP500/target date retirement fund they want.
Having a lien on future taxpayers is literally the only difference between taxpayer funded defined benefit pension funds and 401K/IRA.