Sunday, March 25, 2012
Could employer defined-benefit pensions simply be replaced by a "privatized social security" system?
Teresa Ghilarducci has an interesting perspective (in the New York Times) on the problem of (defined benefit) pension costs, for both public and private employers, titled, “Don’t cut pensions, expand them”, here.
In California, there is a pilot program to let private employees to enroll in a state-managed pension system financed by workers and employers. The writer argues that the pooling of plans reduces risk and tends to improve returns for everyone.
Pie in the sky?
This is beginning to sound like privatized social security.