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Originally Posted by rubicon
justjim: You are essentially correct but keep in mind many corporations were reacting to changes the fed gov't made and forced on employers.
secondly have you noticed that public unions and federal employees continue to full benefits and annual increases even though their liability reserves are under funded. Be ready for a huge tax increase to accommodate them.
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Actually, you are wrong about the feds. Both the Civil Service Retirement System (the old retirement system) and the Federal Employees Retirement System are actually funded with a surplus. That is partly because (unlike many of the state and local civil service funds), they were never raided by greedy politicians (like Illinois) and were never taken captive by private fund managers promising 50% return per year (and delivering -50% returns).
All of the talk about the federal system is just the usual BS by politicians trying to convince you to vote for them so they can protect us from themselves... And feds hired since 1982 have been under FERS which pays a pension less than 1/3 of the old pensions - it was designed so that 1/3 of total retirement is pension, 1/3 is social security and 1/3 is savings via a 401k like plan. And (trust me) the "1/3" that is pension is not even close to 1/3 of what you need a month to live.