Simply stop having, issuing, contributing to them:
Pensions should, by all logic and humanity, wind up
on the dustbin of history, in the tatters and ashes
they already are right now...
Are they working? Do states and counties across
the U.S. fully fund them? Check with Illinois,
Indiana and New Jersey to understand me; two
of these states fund ~45% of the contractually,
legally mandated amounts. Some of these pensions
are partially paid for out of the workers' pockets,
so there is a greater moral aspect (reread: cheating,
lying, etc.) to the various states' bureaucratic,
If pensions didn't exist, state budgets would be more
in the black than residing in the red; retirees would
not rely on them for future income; people would have
a more realistic, accurate awareness of just what
their situations are so as to better plan, accordingly,
spending less as the decades pass, saving more.
Since economic dislocations have always occurred
(called "contractions" by economists), how can contracts
like these even make money or logic sense? Unions,
politicians, attorneys, accountants and judges better snap
to attention here: chaos is coming, if it hasn't already
arrived. This situation is, has been, impossible for a
very long time; apparently, negotiators get caught up in
minutiae (political power plays, rivalries, ego, etc.) at the
expense of fundamental realities, so such contracts,
completely untenable, are written--and taken seriously!
Individual investments and savings, along with a revitalized
social security system, make more sense than over-generous
pension benefits predicated on an economic future which may/
may not ever exist, burdening the tax payers twice, through
government-funded pensions and social security.
Make the greatest, most just payout amounts
now for those with pensions; then pass a
federal fiduciary act abjuring the entire U.S.
pension system from that point forward.
Stop the insanity; understand historical,
current financial reality, explain this carefully
to our people--THEN ACT.