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.
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.