Quote:
Originally Posted by oldRoger
Defined benefit pension plans are being phased out throughout the country.
Think of it this way, when you start work you a looking for some private firm or government to be ready to pay a pension to you some 45/50 years in the future and continue for up to 80 years.
Who can you depend upon for that? Who do you trust for 80 years, politicians? Remember few pension funds even existed 80 years ago and that included SS.
In the end you may object to “depending on the stock market (SM)” but if the SM tanks so does the economy.
I would suggest that most including the military would be better off with their pension invested in the SM than dependent upon the politicians.
Obviously you cannot change the system for most of those currently in the military unless you give them a paid up plan. Yes, you might have to adjust the pay to make it competitive.
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Old Roger brings up a great point. This would be a good approach as long as the Federal Government made a contribution to the 401k plans. It should at least be matching. I also feel that GI pay should not be taxed by any Federal, State or local level. A 401k can be put into a low yield, yet steady return.
At a time of war, I do not feel you can compare the GI to cops and fireman. In some areas being a cop is a pretty cushy job.