> One step would be to move it away from an insurance model and raise the cap on contributions. Another would be to modestly increase the contribution rates.
This is essentially what happened in the mid-90s with the Canada Pension Plan (https://en.wikipedia.org/wiki/Canada_Pension_Plan#1996_refor...): an increase of contribution rates to move beyond PAYGO solvency to a partial advance-funding model. As a result, the CPP now has a few hundred billion dollars in assets (invested largely in equities) providing income to support long-term solvency.
The downside of that is the Canadian pension doesn't provide a livable amount. One ex tech worker in Calgary who's collecting pension now told me it pays his electric bill.
If they do raise the cap on contributions people should have the option of either paying more in to social security or paying more into an uncapped IRA or 401(k).
Re:Norweigan oil fund
by maxerickson on Thursday August 01, 2019 @11:16AM
(#20584526)
Almost the entire point of raising the cap would be the resulting wealth transfer. Doing it with an opt out wouldn't fix the problem.
One step would be to move it away from an insurance model and raise the cap on contributions. Another would be to modestly increase the contribution rates.