Originally Posted by
Emmerson Bigs
Care to share the source of this?
My understanding of a MPCBP is that it's MARKET based..... meaning that it's invested in various vehicles that (hopefully) increase in value in response to the traditional market forces that have consistently produced long-term gains. The performance of each individual MPCBP would be completely dependent on the choices the managers of that plan make regarding investment of the principle. So, how can you (or your source) make a statement that appears to indicate all MBCBPs perform the same way?
Otter is just making a false statement to try to validate his point. If Otterbox was my fund manager, I'd fire him if he thought 3.5% was realistic. T-Bills used to pay 3%, lol. Its easy to look at fund history and easily mix your investments and make 7% or better. You can pick a Vanguard fund on your own and look at the life of the fund and get something that makes 10%.
There may be better options for the retirement but how are you going to fix it to everyone's satisfaction? The NC has been given a goal and came up with a solution. Having 2-3 million in your defined benefit plan if you start as a new hire is easily attainable at a 4% return, upgrading to Captain at 15yrs and working to 65. And the contributions will increase as the pay rates change. New hires are going to have several million in the MPCBP and should have the same or more in their 401K. New hires are going to retire very wealthy, more wealth than someone who got hired 25yrs ago.