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25 sats \ 5 replies \ @Undisciplined 28 Nov 2023 \ parent \ on: Germany: Federal Contributions Top €100 Billion Annually meta
I mean they could only offer government bonds if they wanted to. The benefit is that defined contribution plans can't go insolvent or have a huge unfunded liability issue, because the risk gets shifted to the employee's portfolio.
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628 sats \ 4 replies \ @TomK OP 28 Nov 2023
Ah ok. I don't think that this type of plan exists over here.
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25 sats \ 3 replies \ @Undisciplined 28 Nov 2023
Most US retirement funds have shifted to this model over the past twenty years or so. Basically, it's just an investment portfolio that you and your employer are forced to contribute to and that you aren't allowed to withdraw from until retirement.
One of the reasons it worked politically is that it funnels crazy amounts of money directly to Wall Street.
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628 sats \ 2 replies \ @TomK OP 28 Nov 2023
That's always the idea behind stare driven pension plans: where can we onload our debt/crap
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628 sats \ 1 reply \ @TomK OP 28 Nov 2023
... offload
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0 sats \ 0 replies \ @Undisciplined 28 Nov 2023
I read it as "unload", which also works.
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