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State pension problem stems from defined benefits system

By Bob Martin
Guest columnist

There are two types of pension systems: the defined benefits program and the defined contributions program. It is telling that private employers totally abandoned defined benefits pensions in the 70s and 80s, while almost all public-sector employers still rely on defined benefits pensions. Private sector employers pay for pensions with their own money, while public-sector employers pay for pensions with someone else’s money.