In addition to the abandonment or paring back of defined benefitpension commitments, obligations to fund retiree health care costs are falling by the wayside.
The job of defined benefit fund managers is to project the returns they need make to pay out pensionobligations and determine what investments they need to stay afloat.
If the defined benefit pensions that remain in the private sector are to pay out their obligations without taxpayers getting soaked, pension insurance premiums need to be liberalized to reflect the real risks they face, as signaled by real prices communicated through a free market.