Should we use Dutch style pension accounting?

[FreeJoe]

http://www.nytimes.com/2014/10/12/business/no-smoke-no-mirrors-the-dutch-pension-plan.html?module=Search&mabReward=relbias%3As%2C%7B%221%22%3A%22RI%3A11%22%7D&_r=0

This article in the NY Times talks about how the Dutch put a lot more rigor into their pension accounting rather than relying on hopes and dreams like we do in the US. We did reform private pensions (although to nothing like what the Dutch do), but public pension accounting still relies on very optimistic assumptions for the future leaving us with problems like Detroit when things go wrong.

What are your thoughts?

[Cleita]

1. We need something to improve Social Security.

Imagine if you put more money in the hands of pensioners, they would spend it rather than save it and it would go back into the economy. Something for the anti-Social Security crowd to think about.

[mainer]

2. It would require some backbone in our legislators. Not gonna happen.

Dutch laws don't allow private companies to cannibalize their employees' pension funds, the way we do here.