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Old 04-08-2005, 01:21 PM   #11
Undertoad
Radical Centrist
 
Join Date: Jan 2001
Location: Cottage of Prussia
Posts: 31,423
Got it - it looks like the trustees base their assumptions on a flat GDP somewhat lower than the current actual GDP, meaning that when the economy is booming the "bust date" goes out, while when the economy is bad the "bust date" moves in.

Moving to the so-called private schemes ties the number to the economy so if the economy does well, the amount of the benefits goes up, while if the economy does poorly the amount of benefits goes down.

That should make the system healthier no matter what, but my question is what happens to the markets when all the money goes into them with specific risk-averse conditions about how the money operates.
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