Monday, April 25, 2011

"Defined" Benefit

"Defined benefit" meaning if the organization making the promises gives enough to the pension fund such that it delivers on the promise forty plus years later, AND assuming that organization actually survives that long, AND assuming that organization doesn't make incorrect economic assumptions (demographics, longevity, birthrates), AND assuming that organization doesn't lose its tax base (in the case of government retirements), AND assuming that organization doesn't promise so much to so many (death spiral) that ALL of the promises are meaningless. 

Well, what could go wrong with that plan? 
http://www.realclearpolitics.com/articles/2011/04/25/the_death_of_the_defined_benefit_109646.html

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