|
Post by aztecwin on Apr 29, 2017 8:37:37 GMT -8
Once again, think of all the problems that are solved if your obligation to retirement programs ends when you fund out of current budgets and never expose yourself to future obligations. 401K or TSP programs are the answer.
|
|
|
Post by Spud on May 5, 2017 5:37:12 GMT -8
Once again, think of all the problems that are solved if your obligation to retirement programs ends when you fund out of current budgets and never expose yourself to future obligations. 401K or TSP programs are the answer. In regards to CA agencies in CalPERS, how exactly do you plan on paying for the "buy out" to leave PERS and start 401K programs? PERS contracts are "all in", meaning you can't have some on PERS and others in 401K's (or whatever). The price tag to leave PERS for these other plans is enormous. Essentially economically unfeasible. And 401k's don't solve your ongoing costs for current retirees...There isn't a quick fix to this. The courts will probably allow employers to change retirement plan formula's moving forward, but rolling back plans which have already been "earned" will most likely never happen. You literally have to wait for retiree's to die before the cost benefits of new formula's start lowering costs...or PERS has some miraculous stock market windfall (which I would never count on).
|
|
|
Post by aztecwin on May 5, 2017 18:23:14 GMT -8
Once again, think of all the problems that are solved if your obligation to retirement programs ends when you fund out of current budgets and never expose yourself to future obligations. 401K or TSP programs are the answer. In regards to CA agencies in CalPERS, how exactly do you plan on paying for the "buy out" to leave PERS and start 401K programs? PERS contracts are "all in", meaning you can't have some on PERS and others in 401K's (or whatever). The price tag to leave PERS for these other plans is enormous. Essentially economically unfeasible. And 401k's don't solve your ongoing costs for current retirees...There isn't a quick fix to this. The courts will probably allow employers to change retirement plan formula's moving forward, but rolling back plans which have already been "earned" will most likely never happen. You literally have to wait for retiree's to die before the cost benefits of new formula's start lowering costs...or PERS has some miraculous stock market windfall (which I would never count on). Yes, jut one more example of why these plans were very poorly designed in the beginning. Even a transition plan would be expensive to begin. You would not only have to pay the existing plan cost but the start to a viable plan would add to the expense. The good news is the expe3nse would decrease each year.
|
|