My goodness. Iliya Atanasov took 760 words to answer the question “Why public pension plans are left unfunded” that I can answer in a sentence. Public pensions are left unfunded because it’s cheaper to promise large pensions, make unrealistic assumptions, and not pay for the promised pensions than it is to either to pay for the pensions or increase the wages of public sector workers.
See how easy that was?
I think there’s more to the answer, namely, that politicians gain votes by promising big pensions with full knowledge that they won’t be running for office when the piper must be paid.
“I’ll Be Gone You’ll Be Gone” (IBGYBG) as applied to government.
Jimbino beat me to it. Otherwise, good to go……