Quote:
Originally Posted by PaugusBayFireFighter
Out of every dollar that funds a firefigter's pension and health insurance plan, 100 cents comes from the workers because the "contributions" consist of money that employees chose, through negotiations, to take as deferred wages – as pensions when they retire – rather than take immediately in cash.
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I'm not sure I follow this. How does your pension consist solely of money deferred from your actual time of employment when there's no way of knowing how long your pension will be paid? In other words, how can you choose whether to take x number of dollars now or in pension when you don't know how many dollars you'll receive over your retirement? Doesn't that mean you could end up saying I'll defer $100,000 but collect $200,000 because my pension was paid to me for 40 years? Will your pension eventually run out when you've collected all of your deferred contributions?