Wow. One of the factors contributing to the problems that many, many cities across the country have. Pensions should always be tied to rates of return of what the employee and employer put into the plan, otherwise future workers or tax payers will end up footing the bill when the market goes lower than the pension requires to break even.
Fact: California and Illinois have huge debt problems. They both have really high taxes yet still can't fix them. These problems are both, funnily enough, related directly to underfunded government pension liabilities, related directly to public services with strong unions involved. In essence, precisely what you are saying is false is exactly what has happened in these states.
Wow. One of the factors contributing to the problems that many, many cities across the country have. Pensions should always be tied to rates of return of what the employee and employer put into the plan, otherwise future workers or tax payers will end up footing the bill when the market goes lower than the pension requires to break even.