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Pensions and OPEB – Discussion

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What does a declining asset sufficiency ratio mean?
Citizen A: “Any decline in the asset sufficiency ratio is bad news for taxpayers. It means that the benefits given to retirees are too expensive and we’re going to have to pay even more into the pension plan than we do now.”
Citizen B: “Not all causes of a declining asset sufficiency ratio are created equal. Some are the result of bad choices by government officials, while others are the result of factors outside of their control.”
State which citizen you agree with more and explain why.

Sample Solution

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