The House passes a Pension bill different from the Senate bill, Everyone knowing the real legislation will be written in Conference. Bush is posturing to demand a tougher bill than either of the two versions currently existent, but no one takes the threatened Veto seriously, the Bush bark lacks teeth when dealing with American politics. Will significant Pension legislation get passed? NO!!
Pension plans can pay for themselves, if and only if there is uniformity to both the Contributions and Benefits schedules. This means a singular contribution alongside a singular Benefit payment. The greater the disparity between the levels of Contributions, and/or the disparity between the levels of Benefit payment, the more unstable becomes the system; no matter how devised. Contribution increases never match Benefit payment increases in the higher ranges, while inability of payment of increased Contribution at the lower ranges ensures loss of Benefit payment purchase capacity or over-size liabilities for the Pension fund.
The Author favors a unitary Contribution of 13% of the Median salary of the Beneficiaries, and a unitary Benefit payment of 35% of that Median Income annually. Eligibility for Pension benefits require at least 23 years of contribution. Disability and Medical benefits are to be separated from Pension funds with establishment of their own contributory funds. The time for Changes to Our Pension systems is Now. lgl