[lotsofpulp]

>capital is still allocated on your behalf into the fund that could have been paid to you directly.

For taxpayer funded pensions, it is more like future taxpayers’ capital is allocated on your behalf.

Meaning, the actuary will calculate the government needs to set aside $2 today, the government leaders will say change that to $1 so the taxes are low today, and will end up actually contributing $0.50 because some of the funds were needed to make up for yesterday’s shortfall.