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Re:Rewarding Neglect and Punishing Investment in Struggling ... by tomjen3 on Thursday March 14, 2019 @11:59AM (#19390436)
What I don't get is how on Earth that was ever legal. A defined benefit retirement service must require you to purchase an annuity, so how is it possible to underfund those retirement founds?
Re:Rewarding Neglect and Punishing Investment in Struggling ... by AnimalMuppet on Thursday March 14, 2019 @01:09PM (#19391218)
You purchase an investment, but not an annuity - say, some stocks. You make an over-optimistic assumption about how fast that investment is going to grow, because that lets you put less money in this year to fund it. But when the investment doesn't grow as fast as you forecast, you have an underfunded liability.