Reply #44: In answer to your question, almost all companies had done it already

[joeglow3]

The problem is that it can be difficult for a municipality to shoulder 100% of the investment risk. Even more challenging is fire and police pensions. Here, you can retire with fill benefits after 20 years. Thus, someone can work until they are 45 and then draw 70-80% of salary for life. Thus, it is entirely possible for someone to live to 95, get 70 years of pay for 20 years of work.

Honestly, I don't see how that generous of a package is sustainable. However, like most things, the pendulum doesn't swing to where it needs to be. Instead it swings waaaaay the other way. In this, they are being done away with altogether.

Instead, I would like to see a combination defined benefit plan/defined contribution plan.