Potential solution to looming pensions crisis

Conan said:

Another problem with your proposal is the prevalence of giving “added years” to retiring employees ( as prevalent as “snuff at a wake”). How often have we seen public servants retire early and get additional years added to the service to maximize their benefit (all because this is unfounded, no financial accounting). Moving future service to DC would eliminate this windfall for many public servants.

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My understanding of the 'added years' is that a doctor has to certify that there is no prospect of return to work on medical grounds. Not easy to obtain, I understand. When you write 'unfounded' do you mean 'unfunded'? What is the relevance of that? Slim

Conan said:

Another problem with your proposal is the prevalence of giving “added years” to retiring employees ( as prevalent as “snuff at a wake”). How often have we seen public servants retire early and get additional years added to the service to maximize their benefit

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Interesting assertion there. Is their any empirical data on this? I have heard the assertion before but haven't come across either the empirical evidence or practical examples for ordinary public servants ( I have seen some newspaper reports in relation to people who were seconded to top echelon positions and retired at the end of fixed contracts or -apparently - leaned on to retire for some reason). Otherwise the rules seem fairly tight.

Gordon Gekko said:

Yep, I’d prefer the €377k.

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I don't understand this. Why would you give up the value of future inflationary increases, increments and promotional increases? You'd want to be very confident of some consistent, long-term investment whizzery to compensate.