Quote:
Originally Posted by biker1
Since the benefit is computed from the amount contributed, there would also be an increase in the amount paid out. I am also too lazy to put together any numbers. The benefit calculation may also need to be modified to maximize the impact. That is going to need some spin.
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Correct, the payout is computed from the amount contributed. But, the payout to the lowest income bracket is 90 percent of the income, while the payout to the highest income bracket is only 15 percent of the income. Very skewed in favor of those who are in the low income contribution bracket. Also, the high income people pay income tax on their payout, but the the low income people are exempt from the income tax.