Re: Keynes on "sinking funds," SS, and Economic Policy Inst. and

["John O'Donnell" <jackodonnell@xxxxxxxx>]

Clifford Poirot wrote:
>
> I have a rather naive question (perhaps reflecting the relative inattention
> SS reform has occupied for me). Ohio's retirement system, STRS (quite
> similar to Calpers), exempts all public employees from the social security
> system. We pay the equivalent either into STRS or TIAA-CREF (or some similar
> entity). If you are in STRS, you can retire at the end of 30 years with 70%
> of your three highest year's average salary, and in addition, receive a
> health benefit. In other words, for the equivalent of paying into SS, you
> receive a benefit much better than SS.
>
> If this system can work for Ohio and California, why would it not be good
> for the country as a whole?

It could be. All that would be needed is SS investment
management like the state operated systems [I ASSUME the
Ohio system is similar to Calpers] instead of the ludicrous
I-O-Me "lockbox" nonsense of the SS system.

There is the possibility with the defined benefit plans of
state systems paying more than the system holds/earns during
particularly bad investment periods like are happening now
or are about to happen. I'm unclear as to whether the state
systems would reduce benefits or supplement the system from
general revenues under such an event.

--
			-- jbod

		Tax Privilege, Not People
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