A simple logical argument will suffice. Did you put all of the money that you will be receiving from your pension into your pension in the first?
If not, then that is essentially free money.
Atilla said:
You need to explain what you mean by FREE MONEY? What do you base this on? You make a statement without explaining your assumption or qualifying what is and what is not free money?
How does time play out in all this free money business?
If you are a public servant,
Atilla said:
I am not a public servant.
then
the government is promising you that money when you retire. The government classifies the money as an
unfunded liability and is not regarded as debt as far as accounting is concerned;
thus, that money does not yet exist. The government is not including it in either accounts receivable nor accounts payable. The government is banking upon the fact that they will have this money in the future. Did you notice the key word future. Things in the future do not yet exist. That means that they have promised to pay you with money that they cannot yet afford to pay out. Hence the promise.
If you work for a company, the company may give you an option to put into a pension, which in the US would be something like a 401(k) or IRA. The company then put up even more money to contribute to your pension fund based upon how much you are willing to contribute. When the company you work for, contributes money to your pension, that is free money.
Atilla said:
No it isn't. It's company money and forms part of negotiations and contract of employment and benefits working for 'the' company. Once again you brandishing this free money with no qualifications or assumptions as to what you mean by free money.
Someone or something (a company) gave you money aside from the money you make by working for them.
Atilla said:
Not at all. It forms part of the contract of employment.
If you make $8/hour and work 40 hours/week, then that equates to $320/week before taxes. If a company gives you anything beyond that for a pension, then that is free money and totally at their discretion.
Atilla said:
No it is not at their discretion! It is part of the employment contract and written so.
Unfunded Liability
The amount, at any given time, by which
future payment obligations exceed the present value of funds available to pay them. For example, a pension plan's payment obligations, including all income, death and termination benefits owed, are compared to the plan's present investment experience, and if the total plan obligations exceed the projected plan assets at any point in time, the plan has an unfunded liability.
Public Pension Liabilities in California
http://www.ppic.org/main/publication_show.asp?i=1157
Public Policy Institute of California
Get information from the horse's mouth. Information on pensions in California can be had from California. What is happening in California is no different than what is happening in the UK.