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A comment on California’s public pensions are breaking the bank. Parent comment

Re:California’s public pensions are breaking the bank by throwaway91111 on Monday April 10, 2017 @07:16PM (#14083396)
On the flip side, even the existence of pensions is amoral. Promising the funds of future generations, which may never materializes, condems citizens for decades of wasted spending.

Just look at San Jose. Just look at Social Security. It is hard to identify these liabilities as working the way they were intended. And what do the people gain from them? Overpaid cops?

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Re:California’s public pensions are breaking the bank by kspaans on Monday April 10, 2017 @07:21PM (#14083447)
And yet the Canada Pension Plan is fully funded[0] and in no danger. California's problem is over-promising and mismanaging.

0 - http://www.osfi-bsif.gc.ca/Eng/oca-bac/as-ea/Pages/ascpp.asp...

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Re:California’s public pensions are breaking the bank by aboutthecpp on Tuesday April 11, 2017 @02:56AM (#14085463)
I get angry whenever people use the words "fully funded" to describe CPP. On one hand it's true--but it's also very misleading.

After considering investment returns/time value of money/"net present value" of contributions:

If you were a baby boomer, you'll get ~2x what you put in.

If you were born in the 80's, you'll get half what you put in.

So yes, they "fixed" CPP by changing it so that younger people are legally obligated to "invest" their money in a pension fund that returns half of what it should return based on the contributions younger people are making.

I think CPP is in danger. The danger is that someone will create a clear enough explanation of how CPP was "fixed" and young people will decide that there is no reason for them to allow being screwed the way CPP does.

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Re:California’s public pensions are breaking the bank by throwaway91111 on Monday April 10, 2017 @08:57PM (#14083981)
Agreed.
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Re:California’s public pensions are breaking the bank by amluto on Monday April 10, 2017 @07:19PM (#14083425)
Pensions, done right, are nothing of the sort. You commit present funds to secure future payments. Social security, which is very much the opposite, has issues as a result.

(I assume you meant immoral, not amoral.)

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Re:California’s public pensions are breaking the bank by michaelchisari on Monday April 10, 2017 @07:19PM (#14083434)
Are you unaware of what people gain from Social Security?
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