I've given this a lot of thought and pretty much concluded government needs to get out of the retirement game. Not saying this as a libertarian or any kind of principled statement, simply looking at what happens time and again. We need to switch to 401(k)-style DC plans or something similar where the funds have to be contributed today and are beyond the reach of politics.

The incentives to game the system are just too strong. Whether incorrect discount rates, systematic underfunding, whatever, people always treat the pension assets as a "big pot of money" for today's emergency, and use it for the pet project du jour.

I even see this at my condo association. We have a replacement fund to stay on top of long-term replacement liability. We can't even balance that. What chance does a large government, with many stakeholders, have of getting this right?