Monday, February 14, 2005

Why EPF, PPF are Ponzi schemes!

Why EPF, PPF are Ponzi schemes!
I think the Governement has averted the crisis by moving away from the Defined Benefits pension schemes to Defined Contributions scheme, effective (I think) 1st Jan 2004 for all Central Governement Employees. Nevertheless it would be interesting to do a trend analysis based on Demographic data (there has to be a corelation between Pouplation growth rate and the no. of PPF contributor growth rate), GDP growth rate to arrive at a time frame when EPF, PPF will go bust or may be they wont go bust, but then this has to be analysed.
This can also give important trend lines on liabilities of Central Govt Institutions.

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