Quote:
Originally Posted by Stockerzzz
The amount being paid by the members is very small compared to what the employers are paying.
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Thank you for providing the data and source.
I think you are still misunderstanding my statement. What matters is the total amount going onto the pension system. Right now, it is a combination of member and employer (the city) contributions. If all of those future payments go into a new 401(k) system instead of the existing pension system, it would kill the pension funding.
In 5 years, the pension wouldn't have any money to pay existing retirees. You would be drawing down the pension fund to pay existing retirees, while not replenishing with current worker/employer payments. This would cause the fund to go bankrupt.