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25 sats \ 7 replies \ @Undisciplined 28 Nov 2023 \ parent \ on: Germany: Federal Contributions Top €100 Billion Annually meta
It can be. Most defined contribution plans restrict the investment options pretty dramatically, so they could restrict it to ESG approved investments.
I asked because the germans have fallen deep into this crap. It's like a religion
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I mean they could only offer government bonds if they wanted to. The benefit is that defined contribution plans can't go insolvent or have a huge unfunded liability issue, because the risk gets shifted to the employee's portfolio.
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Ah ok. I don't think that this type of plan exists over here.
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Most US retirement funds have shifted to this model over the past twenty years or so. Basically, it's just an investment portfolio that you and your employer are forced to contribute to and that you aren't allowed to withdraw from until retirement.
One of the reasons it worked politically is that it funnels crazy amounts of money directly to Wall Street.
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That's always the idea behind stare driven pension plans: where can we onload our debt/crap
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... offload
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I read it as "unload", which also works.
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