A few days ago, I did the calculations on my Social Security statement and discovered the government was paying me a -0.8% a year return (yes that is negative) on the taxes paid into the system on my behalf. But rest assured, government workers, who know they are sticking it to us with Social Security, would never allow such a thing to happen with their own pensions:
In New York and Oregon, public employees who contribute their own money
to retirement plans get a guaranteed rate of return that is often far
beyond what the market provides, and taxpayers must make up the
difference. In Oregon, the return is 8 percent annually"”about double
what safe investments like treasury bonds provide today.
Part of a great article by Steven Malanga on the growing power of public sector unions.