- Oct 15, 2022
I can't speak to your specific account above, but in general....no...the math doesn't work out. Politicians often artificially inflate unfunded liabilities rather than steal from them. They grandstand for more money/pensions and campaign on it. On paper, to the average person, it sounds great.You are wrong, they are sustainable if they are funded in the manner the actuaries lay out. The problem is that the politicians see a pile of money and raid it every chance they get. Social security is a prime example.
Another good example was NJ back when Chris Krispycreme was Governor. He whined all over the media about the teachers pension system and what a mess it was and how it was unsustainable. The truth of the matter was that the system had been negotiated over many years and the numbers were well known. The actuaries set the funding models and then the state of NJ ignored them. At the time Kristie was making these statements the state of NJ had not made ANY contribution to the system for over 10 yrs. A huge lie of omission.
I had this discussion with someone some time ago and we pulled up some data/info online. In short, many places/unions/industries promise far more than what they could ever pay out. IE; teachers union in CA or the USPS. In the case of the USPS, they are funded through sales and fees just like a private business yet they receive Billions in bail outs with our tax money due tho their unfunded liabilities (over-promised pensions). Government sector is generally far worse in this regard. Mayor of Chicago has pleaded for help with this and said multiple times the math doesn't add up and their pensions aren't sustainable. California state has over $1 Trillion in unfunded liabilites. And so on