Maybe why college costs so much

starbright
Mon, 28 Jun 2010 05:11:26 +0000

I see it both ways- first a bit of outrage like others, but then after some thought, not.

It is ‘rational’ from their perspective and has nothing to do with morals. Who voluntarily gives up a pension they are entitled to? What if the state needed you, you still loved your job AND your retirement funds kick in at a set period (per your contract?). Would you pass on 100k a year you were legally entitled to? Really?

Most are entitled to the retirement fund after having worked for say 30 years (or whatever their contract was), regardless of what they do afterwards. And they entitled to keep working if they are valued contributors to the organization (if not this one, another). The cost is the same to the institution or state since they have to a) pay the pension and b) pay someone to do a job. So the only issue is should they be allowed to keep working after X years? Yes, since we collective agreed to get rid of mandatory retirement a long time ago, didn’t we?

The point is defined benefit plans are VERY expensive. If you ask me, that is the travesty here. No one should have them. Whole companies go bankrupt trying to fund these monsters, especially when the economy tanks.