So the colea notes is in the old world DB was how it was setup. You paid company a set amt of money and they set you up with x dollars a month for the rest of your life.
Fine when boomers are a massive cohort propping it up via sheer volume alone with people dying younger.
We started living longer and surprise future cohorts are not massive like the boomers. That means the model of DB is not economically feasible. Around the world from left and right countries you are seeing this. Public pensions are being rewritten and people are rightly angry but you cannot sustain the model.
This is why the collective move to DC specifically when it comes to newer employees. What you get is tied to what you put in.
So the colea notes is in the old world DB was how it was setup. You paid company a set amt of money and they set you up with x dollars a month for the rest of your life.
Fine when boomers are a massive cohort propping it up via sheer volume alone with people dying younger.
We started living longer and surprise future cohorts are not massive like the boomers. That means the model of DB is not economically feasible. Around the world from left and right countries you are seeing this. Public pensions are being rewritten and people are rightly angry but you cannot sustain the model.
This is why the collective move to DC specifically when it comes to newer employees. What you get is tied to what you put in.