Quote:
Originally Posted by TheSpecialist
New employees start with zero that is fine, but what would you do with current tenured employees? You are stating take away their pensions and start them with zero? I am saying based on years of service give them a lumpsum into a 401k plan to equal what they would earn if you freeze their pensions today. Then all pesions would be null and void. All most everyone would be happy clams. The taxpayers because there would be no more pensions, and the people who would lose them would be bought out of them and given a substantial start to their 401k.
If your employer came to you tomorrow and said, "Jim business is down and I can no longer contribute to your 401k, and any contributions I have already made I will be taking back." Would you be ok with that?
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Sorry, you did clear that up...
"what would you do with current tenured employees? You are stating take away their pensions and start them with zero? "
No, you don't wipe away what people already have vested in their pensions. YOu transition them gradually from pensions to 401(k)s. This is precisely what happened to almost the entire private scetor, 20 years ago. No rational person would just erase what you have already accrued. That is an important point to make clear, so it was good you thought of that.
I have never heard anyone suggest that any contributions be taken back. I'm saying union folk cannot contribute 5% of their pay toward a pension that gives them 70% of their salary for the rest of their lives. You either need to drastically increase the employee contribution, or decrease the benefit. That is mathematical fact. I don't LIKE THAT by the way, but I accept it as unfortunate truth. Liberals would say that means I hate the middle class, which is insane.