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Response to FBaggins (Reply #13)

Mon Mar 28, 2016, 12:55 PM

19. sorry... you're incorrect

OF COURSE if we paid high interest rates it would come out of general funds. But why should we be involuntarily taxed for a specific purpose... then have no floor on how low interest rates can sink? These are not "market" interest rates... they are essentially set by the FED first. The "market", to the extent it's involved in treasury auctions, is secondary. Are you saying workers who are taxed only to have their money diverted into general funds for any purpose should tolerate getting interest that's below inflation?

And OF COURSE, all things being equal, if the fund received a higher interest rate it would extend the fund's longevity.

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